Amazon’s cloud computing cash cow: AWS, now a $10B business, fuels record quarter for company
April 29, 2016
Grazed from GeekWire. Author: Taylor Soper.
Amazon is happy about its cloud computing business, and so are investors. The Seattle-based company crushed analyst expectations for its Q1 2016 earnings on Thursday, as the company’s stock spiked more than 12 percent in after-hours trading. Wall Street expected Amazon to post earnings per share of $0.58, but the company ended the quarter with a record-high $1.07 EPS, nearly doubling the estimate.
That’s up from a $0.12 net loss in the year-ago quarter. The profit growth — Amazon posted profit for the fourth consecutive quarter — can certainly be credited in large part to Amazon Web Services, which reeled in $2.57 billion during Q1 2016, up from $2.4 billion in the previous quarter and $1.57 billion a year ago, a 64 percent year-over-year growth. Analysts expected AWS to make $2.53 billion last quarter. Operating income for AWS in Q1 was $604 million, up from $195 million last year…
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