Profits at Amazon decreased 37 percent for the first three months of the year. The Internet retailer expected the drop, which was a bit less than some investors had forecast. Amazon reported net income of $82 million, or 18 cents a share, for the first quarter. This was down from $130 million, or 28 cents a share, a year earlier. Revenue rose 22 percent to $16.07 billion from $13.18 billion.
While its revenue fell slightly short, the company’s profit was better than analysts had expected. Analysts predicted that Amazon would report earnings of 9 cents a share and revenue of $16.16 billion. Amazon previously forecast that its sales would grow to between $15 billion and $16.6 billion, or somewhere from 15 to 26 percent.
Amazon has been funding a number of ambitious new projects intended to ensure a lush future for the company. Amazon is spending a lot of money on fulfillment centers that can speed the delivery of physical goods to customers. Amazon is also developing a television set-top box that could give its video services a more meaningful audience in living rooms.
The company is also investing in data centers to expand its Amazon Web Services business. The Web Services business provides start-ups and big corporate clients with computers and bandwidth they can rent as needed. This allows them to build and maintain their online initiatives without having to invest a great deal of money into hardware and software.
The company has been effective at articulating its vision of future opportunities to investors. Tom Szkutak, Amazon’s chief financial officer, said, “We believe putting customers first is the only way to create lasting value for shareholders.” Colin Sebastian, an analyst at Robert W. Baird & Company, said, “It’s more of the same from Amazon.” Mr. Sebastian also talked about the waves of investments that Amazon was making, adding, “That’s going to be a continuing trend.”
