Amazon is creating its own economy from B2C to B2B services. Strong focus on the customer characterises all its businesses.
Amazon Incorporation stock rose 14.13% to reach USD 445 per share in the last week as Amazon Web Services reported USD 1.566 billion in sales that translated into a growth of 49% as compared to last year same quarter. According to the CEO, Amazon Web Services is a potential USD 5 billion business and is expected to continue growing at a phenomenal rate in the near future.
Net sales for the company increased 15% to USD 22.72 billion in the first quarter, compared with USD 19.74 billion in first quarter 2014. Excluding the USD 1.3 billion unfavourable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 22% compared to first quarter 2014.
Operating cash flow increased 47% to USD 7.84 billion for the trailing twelve months, compared with USD 5.35 billion for the trailing twelve months ended March 31, 2014. Free cash flow increased to USD 3.16 billion for the trailing twelve months, compared with USD 1.49 billion for the trailing twelve months ended March 31, 2014.
Operating income increased 74% to USD 255 million in the first quarter, compared with operating income of USD 146 million in first quarter 2014.
Net loss was USD 57 million in the first quarter, or USD 0.12 per diluted share, compared with net income of USD 108 million, or USD 0.23 per diluted share, in first quarter 2014.
Second Quarter 2015 Guidance
Net sales are expected to be between USD 20.6 billion and USD 22.8 billion, or to grow between 7% and 18% compared with second quarter 2014.
Operating income (loss) is expected to be between USD (500) million and USD 50 million, compared to USD( 15) million in second quarter 2014.