Amazon's quarterly profit more than doublesAmazon's Q1 2019 earnings per share (EPS) of $7.1 beat consensus by a whopping 54%, up 117% year-on-year, on net sales of $59.7 billion – at the top end of $56-$60 billion guidance. In particular, the Amazon Web Services (AWS) side – seemingly a curious offshoot in inexpensive cloud computing albeit watched as a growth driver – surged 41% year on year to $7.7 billion and to rival North American profits as the biggest segmental contributor. A new storage class "Amazon S3 Glacier Deep Archive" expanded options and enjoyed keen customer intake, likewise other innovations. AWS has launched in Asia Pacific and has plans for four other regions; with recent new blue-chip customers such as Choice Hotels International (NYSE:CHH), Lyft (NASDAQ:LYFT) and Standard Bank Group – due to its robust offering and data analytics. Large companies are increasingly relying on AWS which constitutes quite a moat. Source: TradingView Past performance is not a guide to future performance
Amazon Prime, which (in my experience) has had a determined effort to get regular customers to sign up, sustained its momentum, helped by Whole Foods in grocery and an ability to specify any day of delivery and one-day free delivery as normal. A two-hour offering for Whole Foods via Prime Now is also witnessing strong demand, also grocery pick-up – as if Amazon marketing is well-attuned. Moreover, its "Alexa" voice-based app for a host of domestic applications – even vehicles – has reached 90,000 skills, and Amazon Studios expanded its media offerings – all on a near global basis. The group's diversification narrative is truly impressive in terms of capitalising on the original Amazon brand: "Virgin on steroids"?