Amazon founder Jeff Bezos makes $4.6 billion in a single day
It was a great Thursday for Amazon founder Jeff Bezos.
The Amazon founder made an astounding $4.6 billion in a single day after reporting massive growth in the company’s cloud service.
Shares in Amazon took off on Friday, raising 14.1 percent to close at $445.10. Amazon as a whole, the online retail behemoth, reported a net loss of $57 million, or 12 cents per share.
In a letter to shareholders, Bezos made a point that Amazon prime would continue to dominate the market place.
“Born a decade ago, AWS is a good example of how we approach ideas and risk-taking at Amazon,” Bezos said in prepared remarks. “We strive to focus relentlessly on the customer, innovate rapidly, and drive operational excellence. We manage by two seemingly contradictory traits: impatience to deliver faster and a willingness to think long term.”
Amazon launched AWS in 2006 as a way for other companies to host their web applications on Amazon’s machinery in Amazon’s data centers. Since then the tech company has dominated the cloud service industry in a way that many companies could only dream of.
In financial documents revealed on Friday the company noted the service earned profits of $265 million on $1.57 billion in revenue during the first quarter. The service is now currently on track to earn $1 billion annually for the company. The change in revenue over year represents a 49 percent increase, making it likely that growth will continue.
Wall Street expects Amazon’s loss to widen to $.16 per share with $22.12 billion in revenue for the current quarter. The company noted that second-quarter revenue guidance ranges from $20 billion to $22 billion, the equivalent of 18 percent growth year-over-year.
The latest earnings related to Amazon’s cloud service will likely kick off a massive spending spree by tech giants Google and Microsoft, the latter of which reported record cloud sales in the first quarter.