Tech

Amazon surges on big earnings and sales beat

Key Points
  • EPS: 1.48 vs. $1.12 estimate, according to Thomson Reuters consensus
  • Revenue: $35.7 billion vs. $35.3 billion estimate, according to Thomson Reuters consensus
  • AWS Sales: $3.66 billion, in line with estimates, according to FactSet
Amazon EPS beats the Street
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Amazon EPS beats the Street

Amazon reported first-quarter sales and earnings that topped analyst estimates, as the company's e-commerce and cloud-computing businesses continued to take business from rivals. The stock climbed 4.7 percent after hours.

Sales jumped 23 percent to $35.7 billion and earnings per share climbed to $1.48 from $1.07. Analysts expected sales of $35.3 billion and EPS of $1.12. The stock surged to $961.80 in extended trading after closing at a record $918.76.

Amazon's giant retailing unit is gaining market share as big department stores shut their doors and internet commerce goes increasingly global.

Meanwhile, Amazon Web Services is drawing more small businesses and large enterprises to its cloud platform. AWS sales increased 42 percent to $3.66 billion, even as the company slashed prices.

Investors are betting that new enhancements in artificial intelligence both in AWS and with consumer products like the Echo will mean more dollars flowing through Amazon's pipes.

Unlike Amazon's retail business, AWS turns a big profit, giving CEO Jeff Bezos more of a cushion to get aggressive on pricing with things like Amazon Prime.