Amazon.com Inc.’s shares rose to a record high over the weekend as domestic growth expands and regional profits increase. International growth has been slow but has not had a significant impact on the retailer’s record.
According to Wells Fargo analyst Matt Nemer, “their biggest market looks really healthy.”
Amazon has been spending billions of dollars on new expansion efforts in international markets as it breaks into the technology industry by offering gadgets like tablets and cloud computing services to large corporations and governments. Though the spending has taken a toll on earnings, investors have shown confidence in Amazon’s Jeff Bezos and his development plans.
Amazon revealed that its sales in North America have jumped 30% to $9.5 billion in the second quarter while operating profit in the region climbed from $344 million to $409 million. Chief Financial Officer Tom Szkutak explained that “sales of apparel and consumable are growing very strongly and this is helping bring shoppers to Amazon’s website more frequently.”
Reuters explains that Amazon’s cloud business, Amazon Web Services, “was among the fastest growing part of the company. Amazon includes results from this unit in its ‘other’ segment for reporting purposes and revenue from this area jumped 61 percent to $892 million in the second quarter.”