Amazon shares closed higher in the US Thursday and are also in the green in after-hours activity as the global tech giant posted earnings that beat Wall Street’s expectations.
Jeff Bezos business also announced it was raising its Prime price for US customers but also offering more, in the form of Thursday night NFL games.
Amazon shares ended the Thursday US trading session 3.96% higher at $1,517.96. And, the stock is also almost 7% in positive territory in pre-market activity, Friday.
Amazon’s Q1 earnings report showed revenues jumped 43% to $51 billion compared with $35.7 billion a year earlier. The retailer’s net profit, meanwhile, hit $1.6 billion in Q1 2018, up from $724 million in Q1 2017.
The tech firm performed strongly across a number of areas, including its AWS arm.
“AWS had the unusual advantage of a seven-year head start before facing like-minded competition, and the team has never slowed down,” said Amazon founder and CEO, Jeff Bezos.
“As a result, the AWS services are by far the most evolved and most functionality-rich…. That’s why you’re seeing this remarkable acceleration in AWS growth, now for two quarters in a row,” Bezos added.
And, looking ahead, Amazon is expecting another strong period of activity in Q2. It expects:
- Q2 revenues of between $51-$54 billion.
- Net profit of $1.1 billion-1.9 billion.
- Strength is set to come from AWS, consumer sales and advertising – just as it did in Q1.
Prime price rise
While the tech business reported a stellar Q1, it also shared some changes. US Prime customers will see a 20% increase in their Prime subscription cost from $99 to $119 for a year’s membership.
Amazon’s CFO Brian T. Olsavksy said that Prime still “provides a unique combination of benefits, and we continue to invest in making this Prime program even more valuable for our members.” He also said the Prime price has been at $99 since 2014.
Amazon has also added Thursday night NFL games to its TV streaming service and will be able to show 11 games for subscribers in the 2018/19 season.