Amazon and Alphabet (Google’s parent ) have reported an increase in sales over the last 90 days.
Amazon saw sales increases of nearly 44 billion dollars – a number that eclipses that of many countries entire economies.
After-hours trading saw a surge as Amazon unexpectedly reported slightly more than flat growth at $256m, vs 2016’s $252m figure. Investors had low expectations given the guidance that Amazon provided that reinvestment would impact would impact the result.
Amazon’s CEO Jeff Bezos said the sales growth was partly due to their, Alexa artificial intelligence in home assistants stating that “In the last month alone, we’ve launched five new Alexa-enabled devices, introduced Alexa in India, announced integration with BMW, surpassed 25,000 skills, integrated Alexa with Sonos speakers, taught Alexa to distinguish between two voices, and more”
Boutique Organic food supermarket Whole Foods, that Amazon acquired in August, contributed $1.3bn in sales for the quarter.
Setting aside the Whole Foods numbers, Amazon reported that their sales increased 29% over all with North America reporting a 35% increase year on year.
Amazon now has more half a million employees.
Shares in Googles parent Alphabet surged over $1,000 in after-hours trading when the company reported sales had risen by 24 percent (nearly 28 billion dollars)
“We had a terrific quarter, with revenues up 24% year on year, reflecting strength across Google and Other Bets,” said Ruth Porat, Alphabets chief financial officer, noting the company was delighted by the performance. additionally stating that the “Momentum is a result of investments over many years in fantastic people, products and partnerships.”
Although Alphabet’s revenue and income is dominated by Google they did report reduced losses and some revenue increases up to $302m, from $197m in their other alpha projects including in their Project Loon WiFi-enabled weather balloon and Waymo they driverless car. Google CEO Sundar Pichai stated in a conference call, YouTube again saw “phenomenal growth”, over 1.5 billion active users spent 1 hour a day watching videos on mobiles in home “Chrome Cast” TV growth was also strong.