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Amazon Posts Surprising Profit
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Amazon profit was $92 million on sales of $23.18 billion for 2nd quarter 2015. Amazon shares went up by 17% with the profit announcement. By contrast Apple's results showed huge profits up 38% and improving margins, yet the stock price declined, possibly because of an expected slowdown in China sales which played a part in Apple's better results. This shows different ways analysts and investors look at tech companies. Amazon has growth of close to 20% for several years, with large investments in warehouses to speed shipping, and early investments in cloud computing. Amazon made operating profits of $703 million on sales increase of 25% to $13.8 billion for the 2nd quarter 2015 in the North American market. Overseas sales increased only by 3% to $7.6 billion showing operating loss of $19 million. Amazon plans to expand with a consumer retail site for Mexico. Sales growth in North America and in cloud computing are two bright spots. In cloud computing services Amazon Web Services increased sales 81% to $1.82 billion, higher than 1st quarter growth of 49%. Profit for 2nd quarter in cloud computing was $391 million, compared to $77 million in the same quarter in 2014.
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