Ripples Advisory, Amazon Doubles Its Profit - and Hikes Prime Membership by $20
Thursday said profits more than doubled to $1.6 billion (roughly Rs. 10,700 crores) in the first quarter, sending shares of its stock soaring to an all-time high.
The company's fast-growing advertising and cloud businesses drove much of its growth, and contributed to its second straight quarter of billion-dollar profits. Overall sales rose 43 percent to $51 billion (roughly Rs. 3.4 lakh crores), up from $35.7 billion a year earlier.
Amazon also said it will hike its Prime membership fee 20 percent to $119 (roughly Rs. 7,900) a year for new members beginning May 11. Existing members who renew their Prime memberships will have to pay the new rate beginning June 16. The company said earlier this month that it has 100 million Prime members, the first time it has released the number.
"The Prime program continues to drive great strength to our top line," Brian Olsavsky, Amazon's chief financial officer, said in a Thursday earnings call with analysts.
The Prime membership program has been an important cornerstone of Amazon's flagship retail business. Prime members now receive free two-day shipping on 100 million items, up from 20 million in 2014, Olsavsky said.
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