Amazon

Retail and digital content giant Amazon has just posted its Q1 2014 earnings, showing strong growth in sales, a sizable dip in operating income but a rise in net income year-over-year. Sales rose 23 percent from last year to $19.74 billion in the quarter, leading to operating cash flow increases of 26 percent to $5.35 billion. In the end that led to a drop in operating income for the quarter by 19 percent to just $146 million. Net income was just $108 million, but that's an increase over $82 million in Q1 2013.

Aside from trumpeting the recent launch of the Fire TV and new content deals for Amazon Prime, Amazon didn't have anything to say about specific sales figures of any of its hardware endeavors. The best we could get from CEO Jeff Bezos was that that Amazon "... is working hard to keep Fire TV in stock." Par for the course on these quarterly earnings reports.

Source: Amazon

 
There are 17 comments

NoNexus says:

20 billion in sales yet less than 3% profit? Kinda tough isn't it?

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A895 says:

They spend most of the money they make.

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NoNexus says:

Obviously

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eahinrichsen says:

Retail's rough in general. Amazon's margins are usually pretty thin.

http://www.marketwatch.com/investing/stock/amzn/financials

NoNexus says:

I know retail is tough, been there done it but the margins are still usually higher. I understand that Amazon is trying hard to be everything but I would have expected at least 5%

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How much of it are they hiding overseas to avoid taxes?

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theShiz says:

32%

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Tough, but high sales and low income isn't anything new for Amazon — or any other non-luxury retailer, really. Not a high margin business.

Suntan says:

Yes, I want the company that I buy a lot of my stuff from to generate larger profit off of sales...

-Suntan

Jay Holm says:

I am a big fan of Amazon!

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toukale says:

3% profit, bloody murder, this is an outrage, fire all management, we expect no lower than 40%, oh never this rule only applies Apple.

ScottJ says:

Net profit != gross profit

darkoman4 says:

By looking at these numbers, I know Amazon is not reaping me off like my cable and cell phone companies.

barondebxl says:

That's not that great of a profit considering the revenue.

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Taz89 says:

No surprise that profits not higher, Amazon tend to play loss leaders in everything so there's not much they can actually make profit on. Most there profit is probably the revenue cut they get for selling other people stuff. It is weird that Facebook who's just became rather profitable recently makes much more already than amazon do. Because of amazon's business model it(sell at loss which essentially kills other business in the same area as amazon who sell at normal price) takes them more effort to even make a profit.

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As Good as Amazon sounds and as big as the company and profits have grown sadly the American market is Amazons only focus. Many other countries would like to purchase but Amazon will not ship outside of the USA. Business must be good!

travaz says:

They Sell in other countries. A lot of Merchandise says it can be shipped outside the US. Plus they have big operations in the UK and Germany. A lot of the reasons they cant ship out of the US is Govt regulation and supplier restrictions.