Amazon announces Q4 sales up 38% to $60.5 billion

All of Amazon's 2017 operating income comes from AWS

The cloud unit, Amazon Web Services, reported a profit of $4.3 billion in 2017, up from $3.1 billion.

The online retail giant reported that it saw its net income more than double to $1.9bn (£1.33bn) in the fourth quarter ending December 31 2017, up from $749m for the same period past year.

Analysts on average were expecting just US$1.85 per share, Thomson Reuters I/B/E/S said. Operating income went up to $1.35 billion, also exceeding expectations of $1.27bn.

In terms of the entirety of 2017, net sales increased 31pc to $177.9bn compared to $136bn in 2016.

Analysts were expecting US$1.5 billion, analytics firm FactSet Research Systems Inc said.

Amazon's North American operations posted revenue of $37.3 billion, up 42%.

According to results released on Thursday, operating income increased almost 70% to $2.1 billion in the fourth quarter, compared with operating income of $1.3 billion in fourth quarter 2016. During the AWS re:Invent cloud computing conference held by the company last December, Amazon announced a series of updates to its cloud computing services. The eCommerce giant posted astaggering $60.5 billion in revenue, surpassing Wall Street estimates which projected its revenues for the period to only reach $59.83 billion.

Net income soared 148% year over year to $1.86 billion in the quarter.

Amazon's Alexa, the business centered on the artificial intelligence (AI)-driven, voice-activated assistant, performed much better than the company expected, which also helped results.

More news: Riyad Mahrez to miss Swansea match and faces fine
More news: Xerox to combine with Fujifilm in joint venture
More news: Vaping damages DNA, may increase cancer & heart disease risk

Amazon said other companies and developers are ramping up adoption of Alexa.

There are more than 30,000 skills for Alexa; 4,000 plus smart-home devices from 1,200 unique brands; Alexa use on Fire TV rose nine times year-over-year, and music listening time on Alexa was three times higher this holiday season compared with the past.

"Although Amazon has grown sharply, it is still nowhere near its potential". He cited categories, including home and apparel, where it is underpenetrated and, with tweaks, should be able to make further gains.

Amazon is stressing groceries and consumables as a result of the Whole Foods acquisition, Olsavsky said.

But he added a cautionary note. Amazon hired almost 130,000 employees globally in 2017, excluding acquisitions, adding a workforce the size of a small city.

The key growth area for the company is AWS. One of these is the increased risk of regulatory intervention and oversight.

Amazon included long list of annual highlights with its four quarter results.

The company said that in 2017 more than five billion items were shipped via Amazon Prime as more new members joined the service than in any previous year.



Latest news

Immigration Not on Agenda at GOP Party Retreat
Trump is taking a victory lap, stressing the newly enacted tax overhaul and efforts to reduce regulations. Democratic Senator Richard Blumenthal of CT said Trump's tone on immigration "was of a divider-in-chief".

Amazon Replaces Alexa With Celebrities in Super Bowl LII Ad
Either way, the timing couldn't be better for Amazon given that Apple is releasing its rival smart speaker, the $349 HomePod , . To enable Alexa to deliver text messages to smartphones via Amazon Echo devices , you need to perform an initial setup process.

Macron warns Turkey against 'invasion' of Syria
So far, Turkey has reported the killing of 712 militants, and the destruction of more than 400 militants facilities. The operation is being carried out under the framework of Turkey's rights based on global law, U.N.

Leicester stars turn on Mahrez as £65m Man City move nears
The Algerian ace has handed in a transfer request at the King Power Stadium as interest from Manchester City continues. Nevertheless, the biggest obstacle to his move will be Leicester and how much they're willing to hold out for.

Arizona man says he sold ammunition to Las Vegas shooter
A message on Specialized Military Ammunition's website says the business is "closed indefinitely". Haig, who was identified in the documents as a person of interest, remains under investigation.

Secret Australian Authorities Paperwork Discovered In Cupboards From Secondhand Retailer
The ABC reported on Thursday that Rudd was launching legal action against it for its reporting on the contents of the files. The files detailed national security briefs, intelligence on Australia's neighbours and counter-terrorism operations.

Ireland is having a referendum over its abortion law
However, the Clare TD said he is trying to "distinguish my views between my own experiences and what's best for society as a whole".

Netanyahu, Putin To Discuss Iran In Moscow After Holocaust Commemoration Event
That according to the Lebanese newspaper A-Diyar, which reported that Putin promised to pass the message along to Israel. This is the seventh meeting between the two leaders since Russian forces have been involved in Syria's civil war.

Emotional support peacock denied entry on United flight out of Newark
Most react to emotional support animals with coos and adornment, but for Dexter the peacock, reactions were far from welcoming. As the woman was stowing her belongings, it's reported the pig defecated on the floor of the plane and then began to howl.

Elon Musk proclaims an early February launch plan for Falcon Heavy
That's been customary ever since a Falcon 9 exploded during a 2016 practice engine firing, destroying both rocket and satellite. America's SpaceX company has conducted a key test ahead of the maiden flight of its new rocket - the Falcon Heavy .

Trump administration mulls a nationalized 5G network
The senior administration official told USA TODAY that the reported memo is an old one, but its stated strategy is correct. Wireless carriers in the US have spent billions of USA dollars buying up spectrum for the launch of their 5G networks .

Grammy Awards 2018: Read the lyrics to Kesha's powerful performance of 'Praying'
Kesha was also nominated for two awards on the night, in the categories of Best Pop Solo Performance and Best Pop Vocal Album. In light of the song's release, the singer penned an essay on the Lenny blog where she expressed the meaning of the ballad.

IKEA founder Ingvar Kamprad dies
The Swede was just 17 when he put his pocket money towards starting the company on his parents' farm in 1943. The business magnate was born in Pjatteryd in Smaland province, southern Sweden .

Korea's Olympic ice hockey diplomacy
This photo, provided by South Korea's unification ministry on January 26, 2018, shows Masikryong Ski Resort in North Korea. Security Council Resolution 2397 caps North Korea's imports of refined petroleum at 500,000 barrels a year.

Potential end of the ISS raises concerns, presents opportunities
In an interview, Bob Bigelow, the company's chief executive, said that he plans to launch two space habitats to low Earth orbit by 2021.

Other news