Amazon, the eCommerce giant exceeded expectations as its first-quarter sales skyrocketed and reached the highest on Thursday. Right after the announcement, the Seattle-based company’s stocks surged up 0.4% taking the overall gain of the year to about 9%.
Amazon reported total revenue of $108.5 billion in its first quarter, representing a significant increase of 44% year on a yearly basis. This figure is well above the predictions of stock analysts, who had claimed that Amazon would report an approximate revenue of $104.5 billion.
The net income of Amazon rose from a minor $2.5 billion to a whopping $8.1 billion in the span of one year. Although the exact reason for this upward jump is unknown, it is suspected to be a result of stimulus checks and increased sales of Amazon Web Services. Right after the announcement, shares jumped 5% on Thursday.
These new developments mark Amazon’s second-highest quarter in terms of sales, trailing behind the $125.6 billion seized in 2020’s last quarter due to the extravagant holiday season and an unusually profitable Prime Day.
Jeff Bezos, the founder of the company stated how AWS has gained immense momentum in the last 15 years. It has become a business that yields $54 billion annual sales and is in the middle of “competing against the world’s largest technology companies,” stated the proud owner.
In addition, the growth hasn’t come to a halt; the company continues to grow by 32% year after year. Bezos also claimed that AWS offers the best mix of services. According to him, companies like McDonald’s and Airbnb will move towards them as they offer the “broadest set of tools and services available.”
It is important to note that Bezos started the company from his garage back in 1994, selling books online. From then till now, Amazon has grown beyond belief: It is now one of the most valuable companies in the world with businesses in several divisions including video streaming, cloud storage, groceries, and much more. Despite the company’s extravagant growth, Jeff Bezos stepped down from his position as the CEO in February and was succeeded by AWS CEO Andy Jassy.
As far as the growth of Amazon is concerned, several analysts have concluded that the company will continue to see constant growth, citing that Amazon stock can go as high as $3,993 from the current price of $3,474.