Amazon hits record $4.3 billion profit

Amazon wage hike pays off as it reveals record profits

'Alexa was very busy': Amazon reports record profits and strong holiday season

True, the Seattle behemoth keeps hitting at least 20 percent revenue growth quarter after quarter - a huge success considering Amazon's size - thanks to its aggressive expansion efforts.

USA -based e-commerce giant Amazon posted its Q4 2018 earnings on Thursday, revealing that the company's net sales totaled $72.4 billion Dollars (roughly $90.07 billion CAD) for the quarter that ended on December 31st, 2018.

For the fourth quarter, Amazon North America delivered more operating income than AWS-$2.25 billion to $2.18 billion.

The company forecast net sales of between US$56 billion and US$60 billion for the first quarter, missing the analyst average estimate of US$60.77 billion, according to IBES data from Refinitiv.

For the three months up to December 31, the e-commerce firm said net sales were up by 20% on this time a year ago, rising from 60.5 billion USA dollars (£46.1 billion) to 72.4 billion dollars (£55.2 billion). At the beginning of a year ago, eMarketer predicted Amazon would only do $2.8 billion in ad sales.

Amazon Web Services - Amazon's cloud hosting platform that powers a significant chunk of the public internet - generated $7.430 billion United States dollars (roughly $9.75 billion CAD) in Q4 2018.

Amazon increased the price of Prime past year, and free two-day shipping has become a common offering from other retailers. This is a sign of strength, as Amazon shifts toward more profitable business segments such as advertising, its cloud computing division Amazon Web Services, and its third-party marketplace and fulfillment services. Net income was $6.04 per share, compared with an average estimate of $5.56.

"Alexa was very busy during her holiday season". Amazon's Q1 2019 estimated operating income is $2.3-3.3bn, while analysts expected a guesstimate of $3bn.

Advertising was a key moneymaker, highlighting Amazon's ability to charge brands and merchants for visibility to its 100 million-plus loyal Prime subscribers, who pay fees in exchange for delivery discounts, movie and music streaming and other perks.

Last month, Amazon celebrated "record-breaking" holiday sales, with particularly strong sales on millions of Amazon devices. Amazon says its revenues will be hindered somewhat by the strong US dollar.

Amazon published its fourth quarter financial results on Thursday, beating market expectations. Its market cap, more than $840bn as of Thursday afternoon, is the largest of any publicly traded company in the world. Sales in physical stores, which are predominantly Whole Foods locations, decreased 2.7 percent to $4.4 billion.

"Amazon will now need to work doubly hard to achieve any future sales gains". The UK and other countries let them.

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