Amazon's sales surge 44% as it smashes earnings expectations

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'It will take years to see a pronounced effect,' Keith Rabois says about Andy Jassy's leadership of Amazon. 'When you still have an executive chairman looking over your shoulder, the degrees of freedom you have are pretty constrained.' CNBCTechCheck

Crucially, Amazon confirmed in its guidance that this year's Prime Day will take place in June, which will likely help year-over-year comparisons for revenue in the second quarter. Typically, Amazon's annual, two-day discount bonanza takes place in July, but the company postponed the event to October last year amid pandemic-related uncertainty.

Outside of its core retail segment, Amazon's cloud-computing and advertising businesses continue to boom. Amazon Web Servicesnet sales of $13.5 billion during the quarter, up 32% year over year. Amazon doesn't disclose advertising sales, but it's included in the company's "Other" category, which saw its revenue grow 77% year over year to $6.9 billion.

A Prime subscription costs $119 a year and includes a range of other benefits, such as free, two-day shipping. Bezos disclosed earlier this month that the company now has 200 million Prime subscribers, 50 million more than it had at the start of 2020. During the quarter, Amazon's sales grew faster internationally than they did in North America. International revenue surged 60% year over year, more than any other segment, while North America revenue climbed 40%.

 

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