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    Amazon’s profit more than doubles on cloud computing, ad biz growth

    By SHOOTUpdated:No Comments1735 Views
    In this Feb. 14, 2019 file photo, people stand in the lobby for Amazon offices in New York. Amazon.com Inc. reports earns on Thursday, April 25. (AP Photo/Mark Lennihan, File)

    By Joseph Pisani, Retail Writer

    NEW YORK (AP) --

    Amazon's push into advertising and cloud computing is paying off, helping the online shopping giant's first quarter profit more than double from a year ago.

    The Seattle-based company on Thursday reported net income of $3.56 billion, or $7.09 per share, for the first three months of the year.

    That beat expectations of $4.61 per share, according to Zacks Investment Research. In the same time a year ago, it reported net income of $1.63 billion, or $3.27 per share.

    Revenue rose 17% to $59.7 billion, which also beat Wall Street expectations.

    At its cloud computing business, called Amazon Web Services, revenue soared 41%.

    The company doesn't say exactly how much its advertising business makes. Instead it lists it as part of its "other" revenue, which jumped 34% from a year ago.

    For the current quarter ending in July, Amazon said it expects revenue in the range of $59.5 billion to $63.5 billion. Analysts expected revenue of $62.53 billion.

    Shares of Amazon.com Inc., which are up 27% so far this year, rose 1.6% to $1,933 in after-hours trading Thursday.

    Elements of this story were generated by Automated Insights using data from Zacks Investment Research. 

    Tags:Amazon



    DirecTV calls off acquisition of rival Dish, possibly ending a yearslong pursuit

    Friday, November 22, 2024
    Dish Network satellite dishes are shown at an apartment complex in Palo Alto, Calif., Feb. 23, 2011. (AP Photo/Paul Sakuma, File)

    DirecTV is calling off its planned acquisition of rival Dish after the offer was rejected by bond holders at that company.

    The deal was reliant on Dish bond holders agreeing to trade in the debt they held for debt in the new company, a swap that would have cost them about $1.6 billion, collectively.

    The retreat by DirecTV this week may end a years-long effort by the company to acquire both Dish and Sling after it announced the bid in September.

    DirecTV was looking to acquire Dish TV and Sling TV from its owner EchoStar in a debt exchange transaction that included a payment of $1, plus the assumption of approximately $9.8 billion in debt. The deal was contingent on several factors, including regulatory approvals and bondholders writing off debt related to Dish.

    "While we believed a combination of DirecTV and Dish would have benefited all stakeholders, we have terminated the transaction because the proposed exchange terms were necessary to protect DirecTV's balance sheet and our operational flexibility," DirecTV CEO Bill Morrow said in a statement.

    The prospect of a DirecTV-Dish combo has long been rumored, and reported talks resurfaced over the years. And the two almost merged more than two decades ago — but the Federal Communications Commission blocked the deal valued at the time at $18.5 billion deal, citing antitrust concerns.

    The pay-for-TV market has shifted significantly since. As more and more consumers tune into online streaming platforms, demand for more traditional satellite entertainment continues to shrink.

    DirecTV says that it will continue to invest in next-generation streaming platforms and offer new packaging options while integrating content from live TV alongside direct-to-consumer... Read More

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