Amazon Just Reported A Profit And Investors Freaked Out With Record High Share Prices

Amazon Turns a profit

Amazon is typically not a profitable company. It’s not that Amazon can’t turn a profit, but instead, it typically throws everything it earns, plus some, into expanding its already massive operations.

On Thursday Amazon CEO Jeff Bezos threw investors a little surprise party, announced that the company made $73 million on $25.4 billion in sales last quarter.

Sure it’s not a huge margin, but it was completely unexpected and it sent shares soaring to a new high.

Shares surged 10% in after-hours trading, soaring into record territory well above $600 a share.

The previous high at Amazon was $580.

Amazon’s sales rose 23% and would have increased by 30% had the dollar not gained so much strength in recent months.

Amazon’s “Web Services” cloud unit posted a half-a-billion-dollar profit this past quarter, more than quintupling that unit’s earnings from last quarter.

AWS is on pace to report $7.3 billionĀ in revenue for 2015.

On a conference call with investors, Amazon said it had 294 million customers on the quarter, up 17% from a year ago.

Universal Basic Income For Dummies

Amazon is now the most valuable retailer in the world, passing Walmart which continues to suffer.

Written by Lane Hanson

Lane Hanson

Lane Hanson is BusinessPundit's Economy Editor. He reports on major changes in the US and Global Economies.