Microsoft wasn’t the only cloud computing winner this week as Amazon announced a 41% revenue growth in its cloud computing business when it released its quarterly earnings Thursday after the market close.
Amazon reported a total net income of $3.56 billion, or $7.09 per share for the first quarter. That surpassed analysts’ expectations of $4.61 per share, according to Zack’s Investment Research.
It also bested the net income reported during the same time last year. In the first quarter of 2018, Amazon reported $1.63 billion in net income, or $3.27 per share.
The company reported its total revenue at $59.7 billion, a 17% gain.
In addition to its cloud services — which power such services as Netflix and Pinterest — the company’s advertising platform also saw its divisional revenue jump during the first quarter. Although not specific to its advertising division, the company listed “other” revenue up 34% year-over-year.
For 2019, shares of Amazon.com Inc. have jumped 27% and closed Thursday at $1,902.25. However, midday trading Friday have seen those shares jump nearly 8% to $1,909.61.
Another big announcement by the retail giant Thursday was the move to offer one-day delivery on most items to its Prime members.
The intent of the switch from two-day delivery to one-day is an effort to make its Prime membership more attractive at its full price point of $119 per year. Additionally, because competitors like Walmart and Target offer online ordering with store pickup, Amazon hopes to apply more pressure to those retail outlets.
Retail analysts said the move should position Amazon, as shoppers continue to get used to faster delivery times.
“It’s a smart change, but it is one that is becoming increasingly necessary,” said Neil Saunders, managing director at GlobalData Retail, to the Associated Press. “Other retailers have really upped their game in terms of delivery.”
The move will mirror Amazon’s one-day delivery option already established in the United Kingdom. Amazon Chief Financial Officer, Brian Olsavsky, said because the company has added more warehouses across the country, the company is well positioned to offer the one-day delivery promise.