Amazon hits record $4.3 billion profit

Amazon hits record $4.3 billion profit

The US tech giant said profit jumped 63 percent from a year ago to $3 billion in the fourth quarter as revenues increased 20 percent to $72.4 billion. It is now 20 per cent, down to 38 per cent year-on-year.

Wall Street was looking for earnings of $5.67 per share on revenue of $71.87 billion.

For the fourth quarter, Amazon North America delivered more operating income than AWS-$2.25 billion to $2.18 billion. Revenue for the unit surged 45.3 percent to $7.43 billion, beating an average estimate of $7.26 billion. Though its global operating loss shrunk to $642 million in the quarter from $919 million a year earlier, new regulations in India are poised to take a toll. Its fourth-quarter profit was just below the earnings the company recorded for the entire year in 2017. That's a five per cent margin versus 4.5 per cent. The potentially weak revenue outlook highlighted concerns about how Amazon will do in India, its biggest global expansion target, where rules on foreign-owned e-commerce companies are changing.

Advertising is another fast-growing source of revenue for Amazon.

Revenues of $232.9bn were up by 31 per cent from $177.9bn past year.

Net income increased to $10.1 billion, or $20.14 per diluted share, compared with net income of $3.0 billion, or $6.15 per diluted share, in 2017.

Earnings per share were $20.14, up a lot from $6.15 past year.

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Losses from global operations widened to US$642 million, reversing a trend of narrower losses internationally. Last year, global revenues were $54.3bn and operating loss was $3.1bn.

The answer, Amazon said, is no.

"Alexa was very busy during her holiday season", Amazon founder and CEO Jeff Bezos said in his only statement about earnings. The number of research scientists working on Alexa has more than doubled in the past year, and the results of the team's hard work are clear. Those profits also help fuel Amazon's growing devices business, which includes smart-home and connected-car gadgets that operate on Amazon's voice-activated Alexa platform.

There's always some fly in the ointment, of course.

However, growth is slowing down.

US -based e-commerce giant Amazon posted its Q4 2018 earnings on Thursday, revealing that the company's net sales totaled $72.4 billion United States dollars (roughly $90.07 billion CAD) for the quarter that ended on December 31st, 2018. Amazon's full-year 2018 profit - $10.1 billion - is more than triple the year-earlier result.

But the company's 19.7 percent year-over-year sales growth represented a substantial slowdown from growth rates ranging from 25 to 43 percent the previous six quarters, due in part to the law of large numbers. Amazon shares are up about 14 per cent this year on investor optimism that the company can maintain growth and profitability, and closed at US$1,718.73 before the results were released. There's no pleasing some people.

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