TOKYO, April 27, 2018 /PRNewswire/ - Saga Nagoya Securities has commented on Amazon Inc. as they reported that its net profit nearly tripled in the first quarter and said momentum of its business was accelerating across all key product lines.
Saga Nagoya Securities research and analysis department highlighted that the online retailer revealed its net sales rose 43 percent year-over-year to $51 billion, inching above Wall Street's expectations and sending the company's stock to above the $1,500 mark.
Head of Corporate Trading, Jonathan Richards at Saga Nagoya Securities said Amazon was positioned for long-term success, citing "a wave of potential new product launches and product line extensions which have traditionally been a successful strategy for the company in recent years."
E-commerce revenues increased 18 percent to $26.9 billion, both domestically as well as internationally. Amazon Web Services (AWS) contributed meaningfully to the revenue growth, having generated $5.4 billion in the three months to March 2018, up 49 percent relative to the same quarter a year ago.
Analysts at Saga Nagoya Securities added in a note to clients: "Despite price cuts, Amazon delivered a strong set of results on all fronts, but a staggering array of investments could weigh on profits in the second half of 2018."
The fast-growing division's revenue has soared in recent years as more businesses are moving their computing operations to the cloud. This trend helped offset declines in operating profit at certain segments in the last few months.
The cloud-computing service, which is now a multi-billion-dollar business, accounts for a majority of Amazon's operating profit.
Amazon's management mentioned that it will hike the price of its annual Prime membership to $119 from $99. The company lowered subscription fess last year in order to cannibalize more expensive competition.
Amazon's stock price surged from $1208 at the beginning of the year to around $1599 by March 2018. Since then it has fluctuated between $1,400 and $1,500.
SOURCE Saga Nagoya Securities