View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
February 2, 2018

Amazon rakes in $2bn profit to break all-time company record

Amazon has gained this strong growth trajectory on the back of Prime and Alexa popularity.

By Tom Ball

Amazon has broken its previous profit record after raking in a towering $2 billion, driven by U.S. tax law changes and strong growth from new customers using Prime.

Pushing its multi-pronged approach, Amazon has also benefitted from a positive reaction to Alexa as well as success in grocery sales following its 2017 acquisition of Whole Foods Market.

The stock market has reflected this strong position, with Amazon shares climbing more than six per cent in extended trading. Amazon has also received a boost from the strong tail wind provided by the U.S. Republican tax bill that became active at the end of 2017, adding $789 million to the company’s profits.

Amazon rakes in $2bn profit to break all-time company record

Ending in December 2017, Amazon recorded a doubled net income that had reached $1.86 billion, with share prices translating to $3.75 per shares. Thomson Reuters analysts had predicted Amazon shares at this point to be worth just $1.85 per share at this point.

Exclusive television titles are proving to be a major attractor for customers as part of the Prime service, coupled with the fast-shipping option that Prime membership is known for.

IBM ships IoT to Rotterdam and NVIDIA GPU to the cloud
Facebook outlaws ALL cryptocurrency adverts
UK startups choose Brexit over EU escape plans

Recently Amazon and Microsoft missed a proposed due date upon which the two companies had planned to bring Alexa and Cortana together, a collaboration had been planned to be carried out before the end of 2017.

Content from our partners
Why the tech sector must embrace faster, smarter talent recruitment
Sherif Tawfik: The Middle East and Africa are ready to lead on the climate
What to look for in a modern ERP system

It is intended that users would be able to benefit from enhanced options for playing music, controlling smart home devices and setting up calendar appointments. The move was set to take the step further to make all Echo or Microsoft devices compatible with Alexa or Cortana.

There have been other big plans made for Alexa as Ford plans to integrate the voice-controlled system into its vehicles, potentially a major new area of use for the Alexa system. This plan also taps into the top trend that is the increasingly smart, connected world of automotive design.

Amazon’s cloud business yet again saw a bumper quarter, generating more revenue than analysts expected. Sales grew by 45%, with $5.11bn in revenue reported in the quarter and $17.46 billion in 2017.

Topics in this article : , , ,
Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU