Amazon's Cloud is flying high, but profit disappoints overall

AWS produced $US687 million profit last quarter, a jump of 69 per cent

Profits from Amazon's Cloud division jumped 69 per cent last quarter, but the rest of its business fared less well.

Amazon Web Services generated an operating profit of $US687 million in the three months to December 31, on sales of $US2.4 billion, Amazon said. That was up from $US240 million in profit and sales of $US1.4 billion a year earlier.

Amazon started breaking out its Cloud numbers last year and it's proved to be the most profitable part of its business. Operating margins at AWS were 29 per cent last quarter, compared to 3 per cent for the company as a whole.

But its results overall, including e-commerce sales and movie rentals, fared less well. Total worldwide sales were up 22 per cent to $US35.8 billion, but earnings of $US1 per share were well below the $US1.56 analysts had been expecting, according to a poll by Thomson Reuters.

That pushed Amazon's shares 11 per cent lower in after hours trading, to $US562, wiping out the 9 per cent gain it made during regular trading.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags amazon.com

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

James Niccolai

IDG News Service
Show Comments

Cool Tech

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Breitling Superocean Heritage Chronographe 44

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?