Amazon’s profit machine shows little sign of slowing down.
This marks the sixth straight quarter in which Amazon’s profits have topped $1 billion and the fourth consecutive quarter of record profits.
Shares of Amazon initially rose 3% in after-hours trading Thursday following the earnings report, before giving up some of the gains.
For years, Amazon was known for bleeding money as it invested heavily in its businesses and rapidly increased revenue.
The steady increase in Amazon’s profits is all the more remarkable given how it continues to pour money into fulfillment centers, premium video content, bricks and mortar stores and healthcare.
For competitors, the only thing scarier than an Amazon willing to lose money while making these costly investments is an Amazon that can make all these bets without going into the red.
Amazon posted revenue of nearly $60 billion for the quarter, an increase of just 17% from the year prior, its lowest growth rate since 2015.
The slowdown comes as Amazon runs up against the law of large numbers.
Amazon Web Services, which remains the leader in the fast-growing cloud computing market, saw sales surge 41% from the prior year to $7.7 billion, even as it faces stiff competition from Microsoft.
The segment now accounts for about half of Amazon’s operating income.
Amazon’s “Other” revenue category, which is said to be primarily made up of advertising services, generated $2.7 billion in revenue for the quarter.