Amazon.com Inc. posted a profit on Thursday that was more than double that of the same period one year ago and has predicted results for the spring as the largest online retailer in the world raised its price for Prime subscribers in the U.S., added NFL football games and praised its cloud services business.
The quarterly results show the company’s broad strength as it has expanded well beyond sending packages, the part of the business that has attracted the ire of President Donald Trump.
Amazon’s forecast beat Wall Street expectations sending its shares higher by 7% to an all-time high during afterhours trading and added $8 billion more to CEO Jeff Bezos’ net worth. Bezos is the founder and largest shareholder of Amazon.
Amazon, based in Seattle, is taking away business from its big box rivals through delivering almost any product customers want at low costs, and sometimes faster than what it might take to go buy the same goods at a brick and mortar store.
It is also expanding across different industries striking a deal of $130 million to stream Thursday games online for the National Football League and working on shipping groceries from its Whole Foods locations to the doorsteps of homes nationwide.
Sales increased by 43% to end the quarter at $51.0 billion which topped analysts’ estimates of just over $49.8 billion.
The quick ascent by Amazon has made a popular target of President Trump. Bezos is the owner of the Washington Post, which has been called by Trump Amazon’s chief lobbyist. However, Bezos is not involved in any way with the news coverage said the top editor of the paper.
Trump has claimed as well, without any evidence, that Amazon costs the USPS money and has ordered an investigation by a task force.
One analyst said that success is the top revenge Bezos gets when up against an administration that tosses veiled threats over sales taxes.
Amazon Prime, the loyalty club for the online giant included video streaming and fast shipping amongst other benefits and has been important to the company’s strategy. It has over 100 million members and they spend more than the average shopper on Amazon.
On Thursday, Amazon announced that the yearly price for Prime would increase from $99 to $119 for members in the U.S.
Revenue ended the quarter at $3.1 billion.