(Image Source: Amazon )

 

BY LAURA JANVIER

ANCHOR LOGAN TITTLE

 

Amazon posted stronger-than-expected quarterly results. Bloomberg reports on the earnings.  

 

“28 cents a share: it’s a 35 percent drop from last year, but it’s way better than the seven cents that analysts were predicting. Also encouraging, gross profit margins rose.”

 

The company poured billions of dollars into the Kindle, corporate applications, customer service, and sales. CNN explains with so much money being spent many analysts were looking for another big profit drop this quarter.

 

“Amazon's been spending lots of money on expanding its operations, so analysts expected a huge drop in profit for the first quarter. And even though earnings did fall, they didn't decline nearly as much as analysts had feared.”

 

One CNBC analyst says Amazon is doing well because it’s sinking money into partnerships and infrastructure.

 

“They are running their business better. They added more third-party resellers, and that’s a really high-margin business for them. ... They spent billions last year building out those warehouses so they can get stuff out very quickly.”

 

Amazon doesn’t publish its Kindle numbers, but The Wall Street Journal says we can assume they’re doing quite well.

 

“One good indicator is that we saw they had a 19 percent jump worldwide media sales. That could be coming from people buying movies, books, music from their Kindles.”

 

Analyst Jordan Rohan says the company clearly knew it had a good quarter on its hands. Chicago Tribune reports .   

 

"This looks like a quarter that has something for everyone, growth and margins to satisfy investors. This was a perfect balance. It looks to me there was a follow-through for the Kindle and Kindle Fire in the re-acceleration of growth in media.