Amazon Sales, Profit Top Estimates, Driven by Retail, AWS
- Holiday-period revenue gains 20% as profitability improves
- Light first-quarter forecast highlights uncertainty in India
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Amazon.com Inc.’s sales and earnings in the busy holiday quarter beat analysts’ estimates, showing the world’s biggest web retailer can maintain rapid growth while improving profitability and fending off online competition from rivals like Walmart Inc.
Advertising was a key moneymaker, highlighting Amazon’s ability to charge brands and merchants for visibility to its 100 million-plus loyal Prime subscribers, who pay fees in exchange for delivery discounts, movie and music streaming and other perks. Overall revenue rose 20 percent, and the company’s "other" revenue category, which is mostly advertising, grew 95 percent to $3.39 billion in the quarter.