Amazon’s first quarter was incredibly profitable, despite huge investments. Profit went up 40 % and turnover followed suit, with a 25 % increase.
Invest in international markets
Amazon’s first quarter turnover reached 35.7 billion dollars (33 billion euro), up 23 % compared to the year before. Profit also skyrocketed to 724 million dollars (665 million euro), the eighth quarter in a row that the American eCommerce company managed to turn a profit.
One of Amazon’s most important growth factors is its cloud division, Amazon Web Services, which grew 43 %. Its number of Prime subscribers in the United States also shot up 36 % to eighty million.
Nevertheless, Amazon continues its immense investments, which meant its costs grew 24 % to 34.7 billion dollars (32 billion euro) in the first quarter. It spent most of that in the international markets, like India. Looking at those, there was a larger loss, but it is still a worthwhile strategy, because CEO Jeff Bezos says Amazon has become the most-visited and the fastest-growing marketplace there.
