Quarterly revenue reviews are out and things are looking good for Amazon! Their Cloud sector, Amazon Web Services handles getting companies to host websites and apps. And this has earned the retail mogul massive profit, since its revenue is up by 1,57 billion dollars.
It’s all green lights for Amazon from here on, since its shares have risen with 4.6%, which means an extra $18 per share. Also, compared to last year’s first quarter review, sales are up by 15%! This year’s first quarter brought Amazon $22.72 billion, which was even more than the $22.39 that financial analysts had predicted.
Even with $1.3 billion losses, due to variation of foreign exchange rates, Amazon still managed to pull off higher net sales by 22% compared to this time last year.
Amazon’s Cloud sector started out ten years back as a business project and now it has become the most profitable Cloud business on the market! So AWS has come a very long way and it is still heading up. “Amazon Web Services is a $5 billion business and still growing fast — in fact it’s accelerating,”, says the founder of Amazon, Jeffrey P. Bezos.
Among the companies that work with Amazon Web Services there are seriously big names such as Netflix, Samsung, Dropbox and the very fashionable Sportify. But beyond any doubt, AWS’ greatest client is none other than the CIA. Yes, that’s right! Who’s providing cloud services for the CIA? Very lucky Amazon. And the list doesn’t end here, because the Pentagon and NASA are also on it!
Everybody seems to be in awe with Amazon Web Services. Its success is somewhat of a surprise even to some of the people at Amazon, who are still blissfully delighted by the good news. It was no surprise for the people who founded AWS however, who have been waiting for the fruit of their labor for quite some time ! Their growth strategy basis has been characterized as a “customer-obsession,” with a “long-term vision”, according to Vice President of Amazon, Teresa Carlson.
AWS broke new ground in the Cloud business and now clearly leads the market, but they will have to keep at with the same determination if they want to keep up with competitors. Google Cloud Computing and Microsoft Azure are gaining territory and Amazon has its work cut out for it, in order to uphold their towering position.
Furthermore, while AWS is having an amazing run, things are not looking so good for the Retail sector. Even though this sector registered a 15 % growth in sales, this sector is struggling with losses of $ 57 million.
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