Amazon.com posted record second-quarter earnings Thursday of $857 million, or $1.78 per share, on $30.4 billion in revenue, surpassing early profit estimates of $1.2 per share on $29.5 billion in revenue.
The company said the earnings report was boosted by record sales on the second Prime Day, the “biggest day ever for Amazon.” Compared to Prime Day in 2015, worldwide orders grew by more than 60 percent and orders from third-party sellers with Prime Day deals nearly tripled, the company said. Sales were also boosted by the launch of Prime in India and the company’s streaming media player Fire TV and Echo devices.
The earnings show Amazon profits are up 800 percent over the same quarter in 2015, when Amazon saw $92 million in profits.
“Amazon’s revenue growth indicates it continues to take market share and Prime membership is taking off in Europe and Japan and shows promise in India,” RJ Hottovy, an analyst at Morningstar Inc., told Bloomberg. “That means Amazon is replicating its success in U.S. abroad.”
The company is continuing to explore options for shipping, one of its biggest expenses. Amazon spent some $3.4 billion in shipping in the past quarter, up 44 percent from the same quarter in 2015. Amazon is also expected to open 16 fulfillment centers later this year.
Forbes reported Amazon CEO Jeff Bezos added $2.6 billion to his net worth, to a new high of $66.5 billion, with the strong earnings report. He became the world’s third richest person, passing Warren Buffett, CEO of Berkshire Hathaway Inc.
[Source:- UPI]
