Amazon has turned in yet another stellar quarter, delivering its third consecutive best-ever quarterly profit with revenue of $30.4 billion and a net income of $857 million, or $1.78 per share. Both figures topped Wall Street estimates as they were anticipating revenues of $29.55 billion and earnings of $1.11 per share.
Shares in Amazon are up more than two percent in after-hours trading as of writing. It’s the fifth straight profitable quarter for Amazon, a company that has traditionally had a hard time generating a profit due to low margins.
The stock boost has made Amazon CEO Jeff Bezos' net worth hit a new record to become the third richest person in the planet. Bezos owns 18% of Amazon's shares; Forbes estimated his fortune to be $65.3 billion.
So, what does Amazon plan to do with all of its newfound wealth? Reinvest it, of course!
In a conference call with media, Amazon Chief Financial Officer Brian Olsavsky said his company plans to double its spending on video content in the second half of this year as well as open 18 new warehouses.
For the upcoming quarter, Amazon is forecasting revenues of between $31 billion and $33.5 billion with a wide operating income range of between $50 million and $650 million.
Amazon Prime is the linchpin of the e-commerce giant’s entire operation but its AWS division has been incredibly impressive as of late. It produced $2.9 billion in revenues, up from the $1.8 billion it generated in the year-ago quarter.
Speaking of Prime, the impact of Amazon’s discount holiday, Prime Day, won’t show up until next quarter. If you recall, Amazon said its 2016 iteration was the most successful yet, setting a new record as the company’s biggest single day of sales in its history.
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