This Graph Says It All When It Comes To Amazon's Striking Profit Growth

E-commerce giant Amazon.com, Inc. AMZN showed a record profit in its Q2 earnings report.

What Happened

Amazon's second-quarter revenue rose from $35.71 billion in the same quarter a year ago to $52.9 billion, which fell short of the $53.27 billion Wall Street expected. Over the same time period, however, net profit surged nearly tenfold from $197 million to $2.5 billion. This metric is seen as a "pleasant surprise" to shareholders as management's long-term strategy of reinvesting nearly every dollar it made is paying off.

Why It's Important

Amazon's quarterly net income was in the red throughout the second and third quarter of 2014 and the first quarter of 2015. Since then, every quarter has been in the green with clear momentum picking up in the back half of 2017.

What's Next

Based on Amazon's results, it may seem that CEO Jeff Bezos is "running out of ideas to reinvest" all of the profit flowing in, Statista said. But this is unlikely to be the case as Amazon's level of innovation and multiple initiatives are well known to investors.

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