Amazon.com Inc (NASDAQ:AMZN) announced an unusual profit for its third quarter, mostly because of its fast-paced growing cloud-computing division. Sales surged higher than expected.
Shares jumped 8% after hours.
Amazon reported a profit of $79 million (17 cents a share), compared to analysts’ estimates of a 13-cent-loss. Amazons biggest loss in 14 years was a year earlier as it put most of its efforts to build out its warehouse network and license music and video content as well as other projects.
It’s also been a year since Amazon disclosed its Fire smartphone, prompting a $170 million write-down as inventory. Amazon has put a hold on smartphone development and dismissed engineers who worked on the device.
In September, Amazon released new tablet computers, an updated Fire TV set-up box. It is currently in development of a high-end computer for the kitchen known internally as Kabinet.
During the September quarter, Amazon sales increased 23% to 25.4 billion, up from $20.6 billion last year. Analysts expect $24.9 billion.
Amazon’s Web Services cloud computing unit, rents out computing power to other companies, reports sales of $2.09 billion, an increase from $1.17 billion, and an operating profit of $521 million.
The quarter included, its one-day Prime Day sale in an attempt to hold out its popular $99-per-year Prime unlimited shipping program. Prime members spend at least twice as much as non-prime members do.
The Prime program also added new cities with same-day shipping, as well as others where they can expect goods to arrive in an hour or two. On Thursday, they announced San Antonio and San Francisco Prime customers eligible for quicker delivery programs.
Amazon shares have skyrocketed up to more than 80% this year. According to market capitalization, Amazon has even surpassed Wal-Mart Store Inc. during that quarter.