• Category: News

Amazon Surprises With $79 Million Profit, Bezos 3rd Richest Man

Amazon.com Inc., the world’s largest e-commerce company, has surprised analysts and investors alike with its $79 million in profits in this third quarter.

Amazon Surprises With $79 Million Profit, Bezos 3rd Richest Man

The news saw the company’s shares soar up to 13% to trade at 17cents a share in extended trading, making the CEO and founder, Jeff Bezos, the third richest person in the U.S.
Soaring profits and share prices can be attributed to the company’s cloud computing arm of business, which is growing at a rapid rate. Amazon Inc. has also been cautious with spending, another factor that could have spurred profits.

The $79 million profits may seem negligible but it is an indication that the company is swiftly recovering from the massive $437 million loss incurred last year due to low sales of its low-cost Fire smartphone.

Michael Pachter, a Wedbush Securities Inc. analyst said, “Last year Jeff Bezos  gambled with the Fire phone and he quickly realized that investors need to be paid with stock.”

Commenting on the surprise profits, Pachter added, “The increase is coming from less spending on products like the Fire smartphone.”

Even then, Bezos is keen on continuing to produce devices that allow people to read books, shop and watch videos.

Amazon’s CEO praised the 7-inch Fire tablet urging consumers to buy the $250 6-pack or the single unit costing $50.

So far, there is increasing confidence in Amazon and investors are impressed with the 82% gain in share prices this year.

World's Third Richest

Following the skyrocketing Amazon Inc. shares in after-hours trading, the 51-year old Bezos piled on up to $5billion to his wealth, bringing his net worth to $55billion, as reported by the Bloomberg Billionaires Index.

Bezos now comes third in line right after Bill Gates and Warren Buffet as the richest people in America. This increase also makes him the fifth richest person in the world, up from position 20 at the start of 2015.

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