Amazon's $3.6bn profit soars past already-high expectations

The retail giant's profit margins are on the increase as its portfolio continues to diversify

26Apr

Amazon has revealed profits surpassing Wall Street's already-optimistic projections for the first quarter of 2019 as its net income for 1Q19 reached a record-high of $3.6bn.

While the company's revenues have slowed down somewhat, causing fluctuations in after-hours trading, it still enjoyed ever-growing profit margins in 1Q19 due to its portfolio of online services such as advertising and AWS. Overall, the earnings report has proved that Amazon's efforts to diversify its product offerings, efforts which include its purchase of Whole Foods last year, have paid off.

However, despite an incredibly profitable beginning to the year, Amazon was less positive about the second quarter of 2019, offering a guidance as much as $1.6bn below the $4.2bn mark that Wall Street has predicted.

The company also chose the announcement to highlight the investments it is putting into education following the negative press surrounding the firm's decision to kill of its New York HQ after mass protests.

"The son of a working single mom, Leo Jean Baptiste grew up speaking Haitian Creole in a New Jersey home without internet access," said Amazon founder and CEO Jeff Bezos. "He's also one of our inaugural group of 100 high school seniors to receive a $40,000 Amazon Future Engineer scholarship and Amazon internship. He rose to the top of his class and is set to study computer science at college this fall, with the dream of getting a job in machine learning.

"In addition to 100 college scholarships a year, we're funding computer science classes in 1,000 high schools and counting, and inspiring younger kids to explore coding through coding camps and after-school programs," Bezos went on. "We love this program, and we can't wait to see what Leo and his fellow future engineers invent."

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