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