Amazon announced its first quarter earnings on Thursday, beating analyst expectations by posting its fourth consecutive record profit. The Seattle-based e-commerce behemoth reported total sales of $59.7 billion for the three months ending March 31, up from $51.0 billion in Q1 2018. Net profit more than doubled from $1.6 billion in Q1 2018 to $3.6 billion this year.
Amazon’s new-found profitability can largely be traced back to strong growth of its higher-margin businesses
. Amazon Web Services, the company’s highly profitable cloud business
, grew by 41 percent, while digital subscriptions and advertising sales also saw growth rates exceeding those of the traditionally low-margin online and offline retail segments.
The recent surge in profit is a pleasant surprise to Amazon’s shareholders and a change in what has long been standard operating procedure for the Seattle-based company. For many years, Amazon had reinvested nearly every dollar it made with a relentless focus on long-term growth
. Considering that the company's profit just soared to an all-time high for the fourth quarter in a row, it seems like even Jeff Bezos is running out of ideas to reinvest all of the money flowing in.