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Amazon's quarterly profits soar past $2bn for first time

The company's CFO attributed 'efficiencies' in warehouses and an increase in online shopping

Chris Riotta
New York
Wednesday 24 October 2018 05:39 EDT
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An Amazon delivery driver apparently threw a box of LED lights through an upstairs window
An Amazon delivery driver apparently threw a box of LED lights through an upstairs window (Reuters)

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Amazon has released its latest quarterly earnings, proving once against the world's largest online retailer is still one of the most tremendous juggernauts in digital earnings.

The company's quarterly profit soared past $2bn for the first time, as revenue from online shopping and its cloud computing business grew.

These were a "big contributor" to the climbing profit margins, Amazon CFO Brian Olsavsky said in a conference call, adding that improved "efficiencies" in warehouses and data centres also led to a boost in revenue.

The Seattle-based company reported net income of $2.53bn, or $5.07 per share, for the three months ending June 30. That blew past the $2.48 per share Wall Street analysts expected, according to FactSet.

The company’s revenue also includes that of Whole Foods, the grocery chain its acquired last year. The acquisition helped Amazon's revenue soar year-to-year by nearly 39 percent, climbing over $32bn in North America and more than $14bn internationally.

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Revenue soared 39 percent to $52.89bn in the second quarter, but was below the $53.37bn analysts expected.

Shares of Amazon.com Inc. rose more than 2 percent to $1,851.50 in after-hours trading Thursday.

The quarterly report arrives as Facebook announces one of the most dramatic declines in US stock market history, as the social platform’s price fell by 18 per cent on Wednesday.

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Additional reporting from the Associated Press.

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