stayontheblack.com

Technology

Amazon's profit more than doubles in first quarter

Amazon has launched a new service in 37 US cities that delivers packages to the trunks of cars for free. The catch? You need to be a Prime member

As reported earlier, for the full year of 2017, Amazon's losses for global business had hit about $3 billion as it aggressively spent in the India market fighting rivals like Flipkart. The company lost billions of dollars for more than a decade as it spent heavily to expand an e-commerce business with razor-thin margins. Analysts were expecting 85 cents per share on revenue of $25.8 billion. Earlier this year the Prime monthly rate was increased to $12 a month from $10.99 a month. Amazon's shares rose 6 percent in after-hours trade. Analysts estimated operating income of $1.13 billion of operating income and sales of $52.3 billion. Sure the company is likely to lose a few Prime subscribers, but that small loss will be more than covered by the aforementioned 20% increase from each remaining customer.

The company is scheduled to hold a series of calls with the media and investors over the course of the afternoon, and we'll update this post as more information becomes available.

Amazon founder and CEO Jeff Bezos recently revealed for the first time that Amazon has more than 100 million paid Prime members.

Separately, the U.S. National Football League announced that it reached a deal with Amazon to stream Thursday night games during the 2018 and 2019 seasons on Amazon's Prime Video. Analysts had a consensus revenue estimate of $49.87 billion for the quarter.

Starbucks reported sales growth that modestly exceeded Wall Street expectations, during a quarter that preceded the fallout over the arrest of two black men at one of its Philadelphia stores.

Its Amazon Web Services business - the computers that power cloud-based business applications - also is expected to see healthy growth. Amazon has relentlessly invested in its logistics network and even runs some of its own delivery trucks alongside UPS and FedEx.