Amazon Prime price hike inbound: you'll pay $119 instead of $99 soon

Amazon Prime price hike inbound: you'll pay $119 instead of $99 soon

Amazon Prime price hike inbound: you'll pay $119 instead of $99 soon

Analyst consensus estimated operating income of $1.13 billion of operating income and sales of $52.3 billion. It's the second time Amazon's quarterly profit has topped $1 billion.

Amazon has been investing in its infrastructure to boost Prime deliveries and selection, growing its total capacity by 1.5x over previous year. Shares jumped in after hours trading.

The company earned $1.63 billion, or $3.27 per share, in the three months ending March 31 - nearly triple the $1.24 per share analysts expected, according to FactSet.

Amazon Inc.'s share had a good day on Thursday afternoon, when its shares surged 6.3 percent to $1,614 in extended trading in NY.

The reason, he explained, is the value AWS creates for customers.

The company is scheduled to hold a series of calls with the media and investors over the course of the afternoon, and we'll update this post as more information becomes available. Amazon recently announced a new Alexa-enabled Echo device for kids, for example, along with an adjustment allowing users to give follow-up directions, and "Alexa Skill Blueprints", where customers with no programming experience can create their own personalized Alexa skills, among other changes. And we like the momentum we've seen there, CFO Brian Olsavsky said during the earnings call. Overall sales rose 43 percent to $51 billion, up from $35.7 billion a year earlier.

Meanwhile there was a surge in revenues for cloud computing arm Amazon Web Services (AWS), up 49% to $5.4bn. Amazon CEO Jeff Bezos - the world's richest person with a net worth of $112bn - in a statement attributed AWS' success the seven years it had to figure things out before serious competition arrived.

Those include the billions of dollars that Amazon has poured into financing new television shows and movies which have been added to its video streaming service.

"Virtually every opportunity that Amazon invests in is going to be structurally higher margin than its core ultra-low margin retail business", Ben Schachter, an analyst at Macquarie Securities, wrote in a recent note to investors.

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