CFDs are complex instruments. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money. CFDs are complex instruments. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

Amazon share price: 3 things we learnt from Q1 results

The online retailer's Q1 earnings had three vital facts for investors.

Amazon share price is slightly down days after its positive Q1 revenue report. Investors had these three major lessons from Amazon’s Q1 earnings.

AWS success drove Amazon's Q1 results

Amazon Web Services (AWS) was a major part of Amazon’s Q1 profits. The cloud computing section’s revenue climbed 41% to $7.7 billion by expanding its services and AWS operating income also grew to $2.2 billion, a surge of 59%. Despite competition from Google cloud, AWS is still the dominant cloud company for businesses.

Prime continued to surge in Amazon's Q1 revenue

Amazon’s Q1 revenue increased with strong subscription numbers for its Prime service. The company’s earnings from the subscription services section, which includes Amazon Prime, jumped 40% to $4.3 billion. Amazon also plans to give more to its profitable subscription division by investing $800 million to enable one-day shipping for Amazon Prime subscribers’ items.

Stuart Applebaum, president of the Retail, Wholesale, and Department Store Union, expressed concern about Amazon’s upcoming plan to have one-day shipping will affect the company’s warehouse workers.

‘Increasing fulfillment speeds means they need to hire more workers, under more sustainable speeds that don't put worker's lives in jeopardy,’ said Applebaum.

The race to offer one-day shipping to customers is already inspiring brick-and-mortar rivals like Walmart and Target to consider making the same offer to consumers.

Amazon Q1 earnings increased from international sales

Amazon’s Q1 profits increased partially because of an uptick in global sales. International purchases from the site grew by 9% and totaled $16.2 billion. Despite tough regulations from India and competition from China’s own ecommerce giant Alibaba, Amazon’s Q1 revenue continued to grow outside the US.

Amazon’s Q1 earnings show that Amazon’s growth beyond retail and outside the US have paid off for the online retailer. Amazon’s Q1 profits also prove that its Prime subscription is continuing to attract customers.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.