Amazon: shares up after results, Prime move
(CercleFinance.com) - Online retailer Amazon on Tuesday said that its quarterly net profit more than doubled and announced that it would bring one-day delivery to its Prime members, which sent its shares up.
The Seattle-based company said that Q1 net profit was 3.6 billion dollars, or 7.09 dollar per share, compared with 1.6 billion dollars, or 3.27 dollars per share, a year ago.
Total sales rose 17% to 52.9 billion dollars.
"We like the fact that overall revenue growth has been driven by more-profitable revenue streams such as AWS, advertising, and third-party sellers," said analysts at Jefferies.
But perhaps the most important takeaway of the quarterly report was that Prime free shipping has been cut to 1 day delivery from the current 2 days, starting in April.
"However, this move is not a surprise," said retail specialist John Zolidis.
"Both Walmart and Target are already at a huge advantage over Amazon in this respect because both retailers already have product stored within a short driving distance of the vast majority of the U.S. population in their respective 1,000s of stores," he said.
Amazon shares are up 0.5% at 1,911.9 dollars on the Nasdaq today.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The Seattle-based company said that Q1 net profit was 3.6 billion dollars, or 7.09 dollar per share, compared with 1.6 billion dollars, or 3.27 dollars per share, a year ago.
Total sales rose 17% to 52.9 billion dollars.
"We like the fact that overall revenue growth has been driven by more-profitable revenue streams such as AWS, advertising, and third-party sellers," said analysts at Jefferies.
But perhaps the most important takeaway of the quarterly report was that Prime free shipping has been cut to 1 day delivery from the current 2 days, starting in April.
"However, this move is not a surprise," said retail specialist John Zolidis.
"Both Walmart and Target are already at a huge advantage over Amazon in this respect because both retailers already have product stored within a short driving distance of the vast majority of the U.S. population in their respective 1,000s of stores," he said.
Amazon shares are up 0.5% at 1,911.9 dollars on the Nasdaq today.
Copyright (c) 2019 CercleFinance.com. All rights reserved.