Amazon's cloud business has grown to a record high, but on Wall Street are dissatisfied with the quarter's totals

Since Thursday, the discussion of the financial results of the online retailer Amazon for the third quarter does not abate. On the one hand, they did not meet the expectations of analysts. On the other - not without records.

But against the background of insufficiently high indicators, the company's shares fell by almost 6%, while the head of the company, Jeff Bezos, lost more than $ 3.2 billion. This happened on the evening of October 27 at 23:45 (Moscow time) - in the first hour after the announcement of the financial results. At that time, his fortune dropped to $ 67.5 billion.

Amazon's net quarterly earnings of $ 252 million ($ 0.52 per share). Analysts had expected it to not fall below $ 0.78. During additional trading on the NASDAQ on Thursday, they fell 5.7% to $ 772 per share from $ 818.36 at the close of trading. Amazon has shown a net profit of six quarters in a row.
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In spite of everything, the Amazon cloud business set another record. In July-September 2016, the division of Amazon Web Services (AWS), promoting a variety of different cloud services (file hosting, distributed data warehouses, rental of virtual servers, provision of computing power, and others), received a record revenue for the entire history of the company - $ 3.23 billion , which is 55% more than in the same period last year.

In the second and first quarters, the Amazon cloud business showed an increase of 58% and 64%, respectively. So, cloud companies are not developing as rapidly as anyone would like. Experts attribute this to increased competition in the cloud industry.

Amazon's revenue from all sales grew by 29% - to $ 32.714 billion. This coincided with Amazon's own forecast for this indicator, which was in the range of $ 31-33.5 billion.

In the fourth quarter of 2016, the company expects growth in sales by 17-27% in annual terms, up to $ 42-45.5 billion. Amazon's operating profit forecast is up to $ 1.25 billion, while Wall Street expects $ 1.62 billion. How will the results of the next quarter on the financial condition of Amazon founder Jeff Bezos - time will tell.

Bezos entered the ranking of the richest Americans after the Amazon IPO in 1997. Then his fortune Forbes estimated at $ 1.6 billion. Since then, Amazon shares have risen by more than 54,000%. In early October, Forbes published the ranking of the richest Americans, in which the creator of Amazon ranked second, reminds RBC with reference to the publication. Then Forbes, using including data on the value of the shares of Bezos companies on September 16, estimated the state of a businessman at $ 67 billion.

As Forbes noted, Jeff Bezos managed to earn $ 20 billion over the year - more than any other member of the list, and as a result he pressed Berkshire Hathaway CEO Warren Buffett on the list, who held second place after Microsoft co-founder Bill Gates for 15 years.



In the Forbes ranking , Bezos’s state at the time of publication was estimated at $ 67.3 billion.