Amazon today announced that it has beaten Wall Street’s already optimistic Q1 forecasts. The revenue of the e-commerce giant has declined slightly, which contributes to moderate fluctuations in the after-trade, but the company is greatly benefiting from ever-increasing profit margins.
The quarterly result was $ 3.6 billion, a new record for business. Many of these inflated margins can be chalked up to online services, including advertising and above all cloud services via AWS.
The income statement shows how much the website has diversified its portfolio with results that now include results from the entire Mat, which Amazon absorbed last year. The grocery chain has seen the effect of several rounds of price cuts since it became part of Amazon, but growth on that side is slow compared to the company’s cloud offer.
Jeff Bezos took the opportunity to note the company’s increased investment in education. Amazon has pushed to highlight its softer side too late as it has been the target of negative publicity of working conditions in its fulfillment centers and has since completed plans to open an HQ2 in Queens.
“A working single son, Leo Jean Baptiste grew up and spoke Haitian Creole in a New Jersey home without internet access. He is also one of our initial group of 1
00 high school seniors to get a $ 40,000 Amazon Future Engineer scholarship and Amazon practice, “he said in a statement. “Our passion for invention led us to create Amazon Future Engineer so we could help young people like Leo from under-represented groups and underestimated communities across the country.”
It is a rosy picture for a company that has killed it on profit, even though the Company was less positive in terms of Q2 when growth has slowed down. Amazon offered guidance of as much as $ 1.6 billion under Wall Street’s expectations of $ 4.2 billion. As CNBC notes, it can clearly point to the company’s intentions to make further investments ahead.