Amazon Beats Microsoft In ‘The Battle of Seattle’
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An anonymous reader writes: Yesterday Amazon CEO Jeff Bezos earned $5 billion in one afternoon when the company’s stock price jumped 9.6%. Amazon reported an actual profit of $513 million (nearly double the amount expected), and next year Amazon’s sales are projected by analysts to be 63% higher than Microsoft’s, which USA Today calls “a good illustration of how growth in the sector has moved from hardware, software and chip companies to Internet firms selling goods or advertising online… [W]hile Bill Gates helped put Seattle area on the map as a U.S. tech hub, Bezos now runs the largest tech company in the State of Washington, by far, in terms of sales.”
Amazon’s Echo and Alexa devices are believed to be outselling their Kindles (and Alexa will soon make her first appearance on a non-Amazon device). But Amazon attributed their surprise jump in revenue to a 51% annual increase in the “tens of millions” of subscribers paying for their Amazon Prime shipping service (which in San Francisco now even includes delivery from restaurants), as well as a 64% increase from their AWS cloud service, which recently announced a new automated security assessment tool.
Amazon ultimately reported more than twice as much new business as Google and three times as much as Facebook, according to USA Today, which notes that now of all the tech companies, only Apple has more revenue than Amazon, and because of the jump in their stock price, Jeff Bezos is now the fourth-richest person in the world. But with all that money floating around, Seattle tech blogger Jeff Reifman is now wondering why Amazon’s local home delivery vehicles in Seattle seem to be operating with out of state plates.
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