Google reports 12% increase in revenue, beats earnings estimates; Amazon’s sales rise 15%, net loss is $57 million
Tt’s earnings time again. (Maybe U.S. business would be managed better if earnings were reported only twice a year instead of quarterly – just a thought.)
Google today reported that revenue grew 12 percent to $13.9 billion, while income came in at $3.59 billion – revenue was a little below estimates, but income was a beat. In after hours trading Google stock is higher – though it should be noted that the stock market was very strong today, with the NASDAQ at one point surpassing its 2000 record high, though it pulled back slightly, closing at 5,056.06.
Amazon also reported after the bell today, reporting that net sales increased 15 percent to $22.72 billion in Q1. Net income came in at a loss of $57 million in the quarter. Technically that is a beat.
Everyone wanted to know how Amazon’s web services would perform, with expectations high.
“Amazon Web Services is a $5 billion business and still growing fast — in fact it’s accelerating,” Jeff Bezos, CEO said in the earnings announcement. “Born a decade ago, AWS is a good example of how we approach ideas and risk-taking at Amazon. We strive to focus relentlessly on the customer, innovate rapidly, and drive operational excellence. We manage by two seemingly contradictory traits: impatience to deliver faster and a willingness to think long term. We are so grateful to our AWS customers and remain dedicated to inventing on their behalf.”
(Sounds like a perfect candidate to be spun off in order to make investors get off of the CEOs back about profits, no?)
Amazon’s guidance for Q2 continues its trend of actually not providing any real guidance at all, saying that net income should come in between a loss of $500 million and a profit of $50 million. In others words, bring out the dart board.