Why Amazon is the perfect moneymaking machine
By
Julia Horowitz, CNN Business
Published May 1, 2021 7:05:53 AM
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(CNN) Throughout the pandemic, Amazon has had no trouble generating huge returns. Once the Covid-19 crisis passes, it s in great shape to make even more money.
What s happening: The internet giant s profits more than tripled to $8.1 billion in the first three months of 2021. Shares, which are near an all-time high, are up 2% in premarket trading. Amazon has the almost perfect business for the world right now, said James Harris, global chief strategy officer at Mindshare Worldwide. The world s leading e-commerce platform, a growing cloud business and a smaller but growing advertising capability all working in unison. It s a compelling offer.
Why Amazon is the perfect moneymaking machine
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On retail:
Demand for online shopping doesn’t appear to be slowing, with revenue from Amazon’s consumer business growing 39% in North America last quarter and 50% internationally.
Amazon now has more than 200 million paying subscribers to its Prime service worldwide. They’re streaming more videos, and are set up to deliver the company another windfall during its Prime Day promotional event later this quarter.
On cloud:
Amazon Web Services, which provides cloud computing services, posted net sales of $13.5 billion during the quarter, up 32% year-over-year.
And as more companies tap the technology to manage workers who are splitting time between their homes and the office, the outlook looks strong.
Amazon continues record run despite reopening of several key markets
April 30, 2021
Amazon has had another good quarter even as western markets, where most of its revenue comes from, open back up after the pandemic. Demand for online shopping remains strong, and Amazon Web Services is growing strongly, with its head Andy Jassy soon set to take over as Amazon’s CEO from the company’s founder Jeff Bezos.
Key Highlights and Financial Snapshot
Revenue jumped from US$2.5 billion in Q1 2020, to US$8.1 billion Q1 2021
AWS had an operating income of US$4.1 billion, up from US$3.07 billion in the same quarter last year.
6 Min Read
(Reuters) - Amazon.com Inc founder Jeff Bezos will step down as CEO and become executive chairman, naming the head of its lucrative cloud computing division as successor in a sign of the company’s transformation from web retailer to internet conglomerate.
This summer, Bezos, 57, will hand the keys of the world’s largest online retailer to Andy Jassy, head of its cloud division Amazon Web Services known as AWS. The announcement on Tuesday settles a long-running question about who would replace the world’s second-richest person at the company’s helm.
Bezos is ending his role as CEO on a high note: the business he began as an internet bookseller 27 years ago is now one of the world’s most valuable companies and posted three consecutive record profits after losses in decades prior. On Tuesday, Amazon reported quarterly sales above $100 billion for the first time.
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