Analysts Eagerly Await Amazon's First-Quarter Results

By Cindy Waxer April 26, 2011

All eyes are on today and the Internet giant prepares to report its first-quarter results after the closing bell.

According to Thomson Reuters I/B/E/S, Wall Street analysts anticipate that Amazon will report a first-quarter profit of 61 cents per share – a drop from 66 cents last year. However, they also expect $9.51 billion in sales – a 33.4 percent spike from last year.

Without a doubt, investors will be listening for news of Amazon’s growth in the areas of books and electronics. So too will sales of the company’s Kindle e-reader keep analysts buzzing. But probably of greatest curiosity is the success Amazon has achieved in the building of its cloud computing arm.

According to an Associated Press article, Amazon “has been willing to sacrifice some profitability to win customers and build its new businesses. It has invested heavily in areas such as "cloud computing" -- which allows companies to store data on its servers -- to take on its rivals Google Inc and Apple Inc.”

Unfortunately, the timing could be better. Just this morning, Amazon got its cloud computing services, Amazon Web Services (AWS) and Elastic Compute Cloud (EC2), back up and running after nearly a week-long outage. According to Amazon's AWS status dashboard, the problems began around 1:41am PT when sites such as Foursquare began experiencing delays and errors when connecting to Amazon’s cloud computing servers.

For all the cost savings and convenience promised by cloud computing services such as Amazon’s AWS, there has been widespread criticism of the pay-as-you-go technology.

Earlier this year, reported that a Germany-based security researcher’s claims he could hack into protected networks using software that runs on Amazon’s cloud-based computers, according to a Reuters report.

Technical glitches aside, it’ll be interesting to see how’s cloud computing success fits into its game plan, and how analysts and investors will react to its role in the company’s long-term growth strategy.

Edited by Jennifer Russell

TechZone360 Contributing Editor

Related Articles

Four Reasons to Reach for the Cloud after World Earth Day

By: Special Guest    4/23/2018

The World Earth Day agenda offers a chance to flip the rationale for cloud adoption and highlight environmental benefits that the technology brings pr…

Read More

Bloomberg BETA: Models Are Key to Machine Intelligence

By: Paula Bernier    4/19/2018

James Cham, partner at seed fund Bloomberg BETA, was at Cisco Collaboration Summit today talking about the importance of models to the future of machi…

Read More

Get Smart About Influencer Attribution in a Blockchain World

By: Maurice Nagle    4/16/2018

The retail value chain is in for a blockchain-enabled overhaul, with smarter relationships, delivering enhanced transparency across an environment of …

Read More

Facebook Flip-Flopping on GDPR

By: Maurice Nagle    4/12/2018

With GDPR on the horizon, Zuckerberg in Congress testifying and Facebook users questioning loyalty, change is coming. What that change will look like,…

Read More

The Next Phase of Flash Storage and the Mid-Sized Business

By: Joanna Fanuko    4/11/2018

Organizations amass profuse amounts of data these days, ranging from website traffic metrics to online customer surveys. Collectively, AI, IoT and eve…

Read More