Feeds

Amazon leaps tall buildings, scoffs at maimed economies

'Bellwether we're not'

Securing Web Applications Made Simple and Scalable

Has Amazon noticed a drop in consumer confidence? Don't even ask the question.

"We're probably not the best bellwether for the economy," CFO Thomas Szkutak said this afternoon during a conference call with industry analysts and reporters. "Just look at our overall growth rates for Q2."

During the quarter ending June 30, Amazon pulled in revenues of $4.06bn, a 41 per cent increase from the same quarter last year. And if you exclude the benefits of foreign exchange rates, net sales still hit $3.9bn, a 35 per cent increase.

The mega etailer also doubled its profits during Q2, from $78 million a year ago to a hefty $158 million. But much of this was down to the sale of the company's European DVD rental assets - a $53 million non-cash gain.

When that $158m figure first hit the net, Wall Streeters pumped the company's stock a good 8 per cent before the afternoon bell. But then they got wise to all those European DVDs, and share price dipped back down. Last we checked, it was up more than 3 per cent in after hours trading.

Even if you ignore the DVD assets, Amazon bettered Wall Street expectations. Operating profit margins grew to 5.3 percent of total sales, up from 4.0 percent a year ago. The Wall Street guess men has expected margins to land somewhere between 3.3 and 4.3.

On Wall Street, beating expectations is extremely important. ®

Build a business case: developing custom apps

More from The Register

next story
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Mobile application security vulnerability report
The alarming realities regarding the sheer number of applications vulnerable to attack, and the most common and easily addressable vulnerability errors.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.