Amazon Profits Jump in Q1, Invests in One-day Shipping

Amazon had a very good start to the year with big gains in sales and profits in the first quarter, although the e-commerce giant warned investors to brace themselves for a slower second quarter. At the same time, Amazon said it’s spending to speed up delivery. The company, which pioneered two-day shipping as a norm for the e-commerce industry, said it’s looking to spend $800 million this quarter to move toward one-day free shipping as the standard for its Prime membership. Clearly, Amazon has the financial might to keep pushing the industry forward. The e-commerce titan soundly thumped earnings estimates — ringing in $7.09 in earnings per share, versus Refinitiv’s projected $4.72. Revenue clocked in at $59.7 billion. For Amazon Web Services, the company’s cloud business and cash cow, a booming 41.4 percent growth delivered $7.7 billion, meeting expectations. Unlike with the previous quarter’s results, Amazon’s stock ticked upward on the news in after-hours trading, increasing 1.2 percent. In January, news of its record-breaking fourth-quarter profits dulled enthusiasm, due to slower-than-expected growth. The same applies for the first three months of 2019. The company’s total revenues increased 16.9 percent. And while that sounds great, it’s the slowest growth rate since early 2015. And web services’ 41.4

Follow WWD on Twitter or become a fan on Facebook.

Read More...

from WWDWWD http://bit.ly/2ZBmZFt