We know that everyone loves to read about the earnings report of their favourite companies and this is also crucial to understand as this also means that you know which stock you need to invest in and what can you expect from it later on. Talking about the biggest e-commerce marketplace in the world, Amazon, the company just posted its earnings report for the last quarter and we have some great news if you are holding Amazon stocks right now. After the company posted their earnings report, its stocks went up by double digits and it was last reported to have grown by 11%.
This rise in stocks is because Amazon posted above-expected revenue figures and this is all thanks to the new CEO Andy Jassy’s efforts to cut costs and increase profitability inside his company. It is reported that “Online store sales grew 4% from last year to nearly $53 billion, compared to flat year-over-year growth in the first quarter”. However, the meat is in the Amazon Web Services which is the company’s highest revenue-generating asset by a huge margin. “Amazon Web Services, the company’s cloud unit, posted a 12% growth in sales, which was better than investors expected, to reach $22.1 billion in sales”.
Despite what everyone might think, Amazon makes 90% of its money from AWS and funds the other parts of its business and even e-commerce department from the AWS revenue which is why it is very important for Amazon to makes its AWS department as efficient as possible. Amazon CEO, during his earnings’ call, said “To grow double digits on an $80 billion revenue run rate business [AWS], when … every company in the world is trying to save as much money as they can [in] the last year … means that we’re acquiring a lot of new customers and a lot of new workloads”.
Andy Jassy also noted that “company’s overhaul of its fulfillment operations and transportation networks from one national system to eight separate regional operations has helped lower costs and speed up delivery to customers.” He also mentioned that “The experience has been so positive for customers [and] our business, that we’re planning to double the number of these facilities,”
