In North America, Amazon’s total sales rose 18 per cent, contrasting with the overall 3 per cent decline in US holiday e-commerce sales estimated by ComScore Media Metrics this month.
Amazon’s global net sales also rose 18 per cent to $6.7bn. International sales – including the UK, France, Germany, Japan and China – rose 19 per cent to $3.07bn. At constant currency rates, the international sales would have risen 31 per cent.
So their revenue rose 18% in the US and if not for dollar strength they would have gained 31% overseas? That is just nuts during a recession like this. It seems like Amazon and Netflix are the recipients of this nesting and hunkering down as people lose their jobs.
It would be interesting to see a breakdown on how many people are using their Amazon Prime service to buy everyday goods at a discount. It might be time to ride the Amazon rocket again because this stock trades great whenever they blow out numbers like this. This part is especially interesting as well.
Bezos said the environment was now ripe for Amazon to begin discussing providing web services for larger companies. Amazon provides a cloud computing platform that offers far-flung users access to storage and computing power in Amazon's data center.
"People in this macro environment, they're looking for ways to save money and cloud computing does that. There's a lot that can be done there," Bezos said, calling it a "silver lining" in the grim economic environment.
This is a high margin business because you are pretty much charging companies to store data and run applications on Amazons trusted servers. Amazon has the infrastructure in place so all they have to do is sign up companies that want to cut costs and they get a nice fat revenue stream in the process. Why would think that a web retailer has the chance to become the "king of cloud computing?"
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