Amazon Posts US$214 Million Profit, Stock Soars
David Curry | | Jan 30, 2015 06:20 AM EST |
(Photo : Reuters) Amazon did well in 2014.
Amazon has announced a net profit of US$214 million after two months of straight operating losses, bringing new life into Amazon's stock that gained 12 percent.
CEO Jeff Bezos couldn't promise a profit in the next quarter, however, due to new spending on data and fulfillment centers, plus investments in enterprise and original programming.
Like Us on Facebook
The net profit couldn't stop Amazon from reporting its first annual loss in 12 years, making some investors nervous that high investments might not pay off in the long-term. Amazon lost nearly US$1 billion in the last two quarters due to the Fire Phone failure and large investments in fulfillment centers.
Amazon's chief financial officer Tom Szkutak also confirmed Amazon Web Services will be split into a separate category in 2015, removing it from the 'North America, Other' classification in the company's financial report.
The split will give first insight into how Amazon's enterprise platform is performing, which currently powers Netflix, Adobe and a few other online services. Investors have been asking for this for a while since it will show how dominant AWS is compared to Microsoft Azure and IBM.
Amazon's investment in fulfillment centers will reportedly help the growing interest in prime, up 53 percent from last year. The US$99 shipment service (with other Amazon services) has over 10 million subscribers.
These subscribers are more likely to use Amazon for shopping, according to the financial report.
Amazon has also invested in 12 original films for 2015; focused on beefing-up the library for its movie streaming service, Instant Video, and competing against Netflix and Hulu Plus.
Large tech companies are all focused on more investment throughout 2015, Google, Alibaba and Facebook are expected to acquire talent, companies and patents.
TagsAmazon, Amazon Web Services, fire phone, Kindle, Amazon.com, e-commerce, Prime, Jeff Bezos
©2015 Chinatopix All rights reserved. Do not reproduce without permission
EDITOR'S PICKS
-
Did the Trump administration just announce plans for a trade war with ‘hostile’ China and Russia?
-
US Senate passes Taiwan travel bill slammed by China
-
As Yan Sihong’s family grieves, here are other Chinese students who went missing abroad. Some have never been found
-
Beijing blasts Western critics who ‘smear China’ with the term sharp power
-
China Envoy Seeks to Defuse Tensions With U.S. as a Trade War Brews
-
Singapore's Deputy PM Provides Bitcoin Vote of Confidence Amid China's Blanket Bans
-
China warns investors over risks in overseas virtual currency trading
-
Chinese government most trustworthy: survey
-
Kashima Antlers On Course For Back-To-Back Titles
MOST POPULAR
LATEST NEWS
Zhou Yongkang: China's Former Security Chief Sentenced to Life in Prison
China's former Chief of the Ministry of Public Security, Zhou Yongkang, has been given a life sentence after he was found guilty of abusing his office, bribery and deliberately ... Full Article
TRENDING STORY
-
China Pork Prices Expected to Stabilize As The Supplies Recover
-
Elephone P9000 Smartphone is now on Sale on Amazon India
-
There's a Big Chance Cliffhangers Won't Still Be Resolved When Grey's Anatomy Season 13 Returns
-
Supreme Court Ruled on Samsung vs Apple Dispute for Patent Infringement
-
Microsoft Surface Pro 5 Rumors and Release Date: What is the Latest?