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Business

Amazon smashes earnings but clouds outlook

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Opening sequence

Business

Amazon smashes earnings but clouds outlook

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COMING UP:Amazon smashes earnings but clouds outlook

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00:00:00
>> With Amazon's Deal Notification.>> Amazon, delivering smashing results for the latest quarter ending in June. Once known for mostly delivering losses, the ecommerce giant reporting Thursday a net profit of about $850 million. Last year at the same time, that number was 92 million, and it's thanks to a big boost in its cloud storage service, Amazon's fastest growing business.
00:00:25
But Reuters' Jeffrey Dastin in San Francisco said it wasn't all good news.>> While it posted the best profit for this June quarter in its entire history, it died at a poor result for the September quarter, such that analysts are wondering what's going on. Amazon typically spends a lot for developing new ways to make shipping more efficient, whether it's in drones or fulfillment centers.
00:00:51
And the question is why can't Amazon have that high investment while still having high profit margins?>> Amazon seemingly in the dark about its third quarter, saying operating income would be between 50 to $650 million, an unusually wide range for guidance. That's the period that includes its recent Amazon Prime Day, an event started last year that gives big discounts to its Prime members, who pay the $99 annual fee.
00:01:19
And we already know that was a success, so it leaves investors wondering, why the cloudy outlook?