Saudi Press

Saudi Arabia and the world
Saturday, Mar 14, 2026

Why Amazon is the 'perfect' moneymaking machine

Why Amazon is the 'perfect' moneymaking machine

Throughout the pandemic, Amazon (AMZN) has had no trouble generating huge returns. Once the Covid-19 crisis passes, it's in great shape to make even more money.

What's happening: The internet giant's profits more than tripled to $8.1 billion in the first three months of 2021. Shares, which are near an all-time high, are up 2% in premarket trading.

"Amazon has the almost perfect business for the world right now," said James Harris, global chief strategy officer at Mindshare Worldwide. "The world's leading e-commerce platform, a growing cloud business and a smaller but growing advertising capability all working in unison. It's a compelling offer."


A closer look at the numbers reinforces his point.

On retail: Demand for online shopping doesn't appear to be slowing, with revenue from Amazon's consumer business growing 39% in North America last quarter and 50% internationally.

Amazon now has more than 200 million paying subscribers to its Prime service worldwide. They're streaming more videos, and are set up to deliver the company another windfall during its Prime Day promotional event later this quarter.

On cloud: Amazon Web Services, which provides cloud computing services, posted net sales of $13.5 billion during the quarter, up 32% year-over-year.

And as more companies tap the technology to manage workers who are splitting time between their homes and the office, the outlook looks strong.

"During Covid, we've seen many enterprises decide that they no longer want to manage their own technology infrastructure," Chief Financial Officer Brian Olsavsky said on a call with analysts Thursday. "We expect this trend to continue as we move into the post-pandemic recovery."

On advertising: Revenue from ads is accelerating, too, as advertisers try to target consumers who are spending more time online. The company's share of the US digital ad market surpassed 10% in 2020, according to eMarketer. The research firm expects revenues from this business to hit $20 billion this year and surge past $30 billion by 2023.

"As consumers shift more [spending] online, trade spending and shopper marketing will rapidly follow, with the bulk flowing to Amazon," said eMarketer analyst Eric Haggstrom.

That's all great news for CEO Jeff Bezos, who is once again the world's richest man with a net worth of $202 billion, according to the Bloomberg Billionaires Index. Though Bezos is set to hand the reins to Andy Jassy later this year, his 11% stake in Amazon should keep minting money.

Watch this space: Amazon continues to face the specter of antitrust action, and repeatedly grabs political attention for its treatment of workers, though it recently defeated a union drive in Alabama. But without government intervention, the company's dominance is only poised to grow.

Big picture: Amazon was the last Big Tech company to report earnings for the beginning of 2021. In aggregate, the results from these firms are even more eye-popping. Together, Facebook (FB), Amazon, Apple (AAPL), Google (GOOGL) and Microsoft (MSFT) earned nearly $75 billion during the first three months of the year.

Let's say that again: almost $75 billion. With a B.

Break out the Coca-Cola: It's time for Buffettpalooza


Live from Los Angeles, it's Warren Buffett.

This Saturday, the billionaire investor will host one of the business world's biggest events, livestreaming the Berkshire Hathaway annual meeting from California, my CNN Business colleague Paul R. La Monica reports.

The backstory: Usually, tens of thousands of shareholders flock to Nebraska to see the Oracle of Omaha while consuming Berkshire-owned See's Candies and Dairy Queen Dilly Bars. But LA is home to Berkshire vice chairman and longtime Buffett confidant Charlie Munger. Munger, who is 97, missed the meeting last year.

Buffett and Munger — as well as fellow Berkshire vice chairmen Ajit Jain and Greg Abel — are set to field questions from shareholders and journalists, who are expected to grill them on issues ranging from the stock market's stunning rebound to the economic outlook.

Other potential questions include:

*  Berkshire Hathaway is sitting on nearly $140 billion in cash. What kind of deals is Buffett considering?

*  Top Berkshire holdings include blue-chip companies like Apple (AAPL), Coca-Cola (KO), Bank of America (BAC) and Kraft Heinz (KHC). Would the team consider more bets on high-growth firms, like its stake in the cloud database company Snowflake?

*  Does Buffett, who famously called bitcoin "rat poison squared," endorse recent efforts to take the cryptocurrency mainstream?

*  Buffett is known for buying quality companies for the long term. What does he think of meme stock mania and other trends among Robinhood investors?

Bank of America doesn't think cities are dead


When the pandemic hit last year, people left cities in droves — and, lured away by lower costs and more space, it wasn't clear they'd ever come back.

But according to a new analysis from Bank of America, "reports of the city's death have been greatly exaggerated."

The bank's economists found that while urban flight did occur in high-cost cities like New York and San Francisco, there are still incentives for people to return — especially younger workers.

"NYC and SF remain premier cities for young people as economic, financial, and cultural centers," Bank of America said. "The pullback in rents over the past year adds an additional incentive to come, and with the share of young adults living at home reaching record highs in 2020, there could be some pent-up demand."

The bank also noted that those who did migrate out of the city "did not go very far," pointing to research from the Cleveland Fed showing that many people who migrated out of New York and San Francisco stayed within 150 miles of those cities.

Watch this space: Bank of America noted that downloads of StreetEasy, a New York apartment hunting app, have "increased significantly in recent months, suggesting people are looking to return to NYC." With Mayor Bill de Blasio targeting July 1 for New York City's "full reopening," this summer could be an important test.

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Strait of Hormuz Crisis Forces Saudi Arabia Into Major Oil Production Shut-In
Strait of Hormuz Crisis Forces Saudi Arabia Into Major Oil Production Shut-In
Saudi Arabia Slashes Oil Output as Strait of Hormuz Crisis Cuts Deep Into Gulf Revenues
Saudi Arabia’s Cultural Scene Presses Ahead as Nation Navigates Regional War
Saudi-Pakistan Defence Pact Faces Real-World Constraints as Iran War Escalates
Saudi Arabia Offers Two Million Barrels of Crude From Red Sea as War Disrupts Gulf Exports
Formula One Faces Tens of Millions in Lost Revenue if Bahrain and Saudi Arabia Races Are Cancelled
Formula One Set to Cancel Bahrain and Saudi Arabian Grands Prix Amid Escalating Middle East War
Saudi Arabia Downs Dozens of Iranian Drones in Major Defensive Operation
Saudi Arabia Cuts Oil Output by About Twenty Percent as Iran War Disrupts Gulf Energy Flows
Formula One Set to Cancel Bahrain and Saudi Arabian Grands Prix Amid Escalating Iran War
Asian Energy Security Tested as Strait of Hormuz Disruption Threatens Oil Supplies
Iran Sets Three Conditions for Ending Regional War as Diplomatic Efforts Intensify
Saudi Arabia Launches Royal Institute of Anthropology to Examine Social Transformation
Pakistan’s Prime Minister Shehbaz Sharif Arrives in Saudi Arabia for High-Level Talks
Saudi Aramco Turns to Ukrainian Drone Interceptors to Shield Oil Infrastructure from Iranian Threats
UK Foreign Secretary Travels to Saudi Arabia to Reinforce Support for Regional Allies
Rising Iran Conflict Casts Shadow Over Saudi Arabia’s $38 Billion Gaming Industry Ambitions
Iran Launches Missile and Drone Strikes Across Gulf as Oil Prices Surge Past $100
Saudi Air Defences Destroy Three Drones Targeting Strategic Shaybah Oil Field
Debate Grows Over Saudi Arabia’s Role in Sudan War Amid US Alliance Questions
Pakistan’s Prime Minister Travels to Saudi Arabia After Discussions With Iranian Leadership
Two Strategic Pipelines Allow Saudi Arabia and the UAE to Bypass the Strait of Hormuz
US Deploys Bunker-Buster Bombs to UK Airbase as Iran Conflict Intensifies
Iran warns of $200 oil as forces target merchant ships in Gulf
Japan to Release 45 Days of Oil Reserves Amid Iran Conflict
Saudi Red Sea Oil Exports Set for Record in March as Kingdom Reroutes Crude Amid Hormuz Crisis
Saudi Arabia Seeks Belgian Military Support After Iranian Missile Attacks
Saudi Arabia Welcomes US Decision to Designate Sudan’s Muslim Brotherhood as Terrorist Organisation
Saudi Aramco Plans Dual Gulf and Red Sea Export Routes as Iran Crisis Disrupts Oil Shipments
Saudi Cabinet Condemns Iranian Attacks and Reaffirms Kingdom’s Right to Defend Its Sovereignty
Ukraine Deploys Counter-Drone Teams to Gulf States as Iranian Drone Threat Expands
Bahrain Grand Prix Faces Uncertainty as Saudi Arabia Works to Keep Formula One Race on Track
Saudi Arabia Faces New Strategic Dilemma in Yemen as Regional War Reshapes Calculations
OPEC Confirms Saudi-Led Oil Output Increase as Iran War Disrupts Global Energy Markets
Pakistan Pledges Rapid Support for Saudi Arabia Amid Escalating Middle East Tensions
Global Energy Agency Announces Record Release of 400 Million Barrels to Stabilize Oil Markets Amid Hormuz Disruption
Aramco Warns Global Oil Market Faces ‘Catastrophic’ Shock if Strait of Hormuz Remains Closed
Iran Launches Drone and Missile Attacks Across Gulf Targets Including Saudi Arabia, Kuwait and Bahrain
Saudi Arabia Elevates Fahad Al-Saif as Vision 2030 Enters Crucial Implementation Phase
Saudi Aramco Expands Routes to Move Oil Without Reliance on the Strait of Hormuz
Saudi Arabia and Pakistan Reaffirm Mutual Defense Cooperation Following Iran Strike
Saudi Arabia Plans Major Ukrainian Arms Deal to Counter Iranian Drone Threat
Pentagon Signals Intensification of U.S. Air Campaign as Iran Conflict Escalates
U.S. Senator Lindsey Graham Raises Prospect of Mutual Defense Pact With Saudi Arabia Amid Iran Conflict
Why Saudi Arabia Is Unlikely to Have Wanted U.S. Airstrikes on Iran
Saudi Arabia’s Red Sea Oil Exports Set to Reach Record High as Gulf Routes Face Disruption
Saudi Arabia Pushes East–West Oil Pipeline Toward Full Capacity as Hormuz Crisis Disrupts Global Energy Flows
Oil Prices Retreat From Peak as G7 Weighs Release of Strategic Reserves
Pentagon Identifies U.S. Soldier Who Died After Iranian Strike on Saudi Air Base
×