Amazon Inc has broken his quarterly streak by dropping its profits to $2.6 Billion. The profit reported for the last quarter was $3.6 Billion but the present profit is doubled up as compared to the last year same quarter. Hence, it ended his streak of four consecutive quarters which was rising over every quarter.
The company’s profitability has taken a slight dive due to the surging shipping costs after it announced one-day shipping, the standard for one-day shipping. It’s shipping cost surged by 36% but it is helping to be on the edge to fulfill its customer demand and to beat up the rivals.
“It does create a shock to the system,” said Chief Financial Officer Brian Olsavsky in a call with analysts. “We expect we’ll be working through that for a number of quarters, but when the dust settles, we will regain our cost efficiency over time.”
On a brighter note, Amazon sales grew by 20% to $63.4 Billion i.e. far more than expected by analysts and 3% more than the earlier three months. Over the years the company has sprouted new businesses such as cloud-computing business, groceries, advertising, and advertising making it strong than ever.
While it has outsized its success in every market orbit, it has been one of the targets by the Department of Justice over the anti-trust claims. The tech giants that are in the radar include Google, Facebook, and Apple. Recently Facebook and Google reported recorded 28% and 19% increase in revenue.
Amazon Web Services which is one of the leading cloud services in the market drove $8.4 Billion in sales up by 37% which is less than last quarters[40%]. Cloud computing business that rents computing power made out $2.1 Billion in sales up by 29%. If compared to Microsoft its Azure cloud service sales rose 64% and cloud computing business revenue rose by 39%