Amazon Web Service Earnings Jumps 58 Percent In 2016 Q2 Compared To Q2 2015 Making Amazon Fourth Biggest Company In The US

Amazon web services which is still the biggest among the Cloud service providers by users reported its earnings which also saw the company seal its place as the fourth biggest company in the US after Apple, Google and Microsoft respectively. Amazon as a trading company is now valued at $365.8b. According to Businesswire, the company’s operating cash flow increased 42% to $12.7 billion for the trailing twelve months, compared with $9.0 billion for the trailing twelve months ended June 30, 2015. Free cash flow increased to $7.3 billion for the trailing twelve months, compared with $4.4 billion for the trailing twelve months ended June 30, 2015. Free cash flow less lease principal repayments increased to $3.9 billion for the trailing twelve months, compared with $2.4 billion for the trailing twelve months ended June 30, 2015. Free cash flow less finance lease principal repayments and assets acquired under capital leases increased to $2.5 billion for the trailing twelve months, compared with an outflow of $492 million for the trailing twelve months ended June 30, 2015. Net sales increased 31% to $30.4 billion in the second quarter, compared with $23.2 billion in second quarter 2015. The favorable impact from year-over-year changes in foreign exchange rates throughout the quarter on net sales was $166 million. Operating income was $1.3 billion in the second quarter, compared with $464 million in second quarter 2015.

How about Amazon’s web service though?

The Cloud division raked in a revenue of $2.88b in the second quarter of this year and this represents a 58 percent increase when compared to the same period last year and according to the breakdown, operating income for Q2 stood at $718m.

Amazon Web Service (AWS) is faced with competition from the likes of Google, Microsoft, IBM and recently Samsung which acquired Joyent recently.