London Daily

Focus on the big picture.
Thursday, Mar 12, 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

0:00
0:00
Close
Release of Mandelson Files Raises Tensions as UK Seeks Stable Relations With Donald Trump
UK Documents Reveal Starmer Was Warned About Mandelson’s Epstein Links Before Ambassador Appointment
Nearly Five Hundred UK Mortgage Deals Withdrawn in Two Days as Market Volatility Forces Lenders to Reprice
Three Cargo Ships Hit Near Iran as Attacks Spread to Strategic Strait of Hormuz
Why British Police Repeatedly Declined to Investigate Jeffrey Epstein’s UK Links
UK Parliament Ends Hereditary Seats in House of Lords, Closing Chapter on Centuries of Aristocratic Lawmaking
EU and UK Urge Israel to Act Against Rising West Bank Settler Violence Amid Regional Tensions
US Senator John Kennedy Says Keir Starmer Should Not Be Trusted for Military Advice Amid Iran War Debate
UK High Court Rejects Attempt to Revive Terrorism Charge Against Kneecap Rapper
Revolut Secures Full UK Banking Licence After Multi-Year Regulatory Wait
Kentucky’s Bench Boost Powers Wildcats Past LSU in SEC Tournament Opener
British Couple Die After Being Pulled From Water at Australian Beach During Family Visit
Global Energy Agency Announces Record Release of 400 Million Barrels to Stabilize Oil Markets Amid Hormuz Disruption
British Airways Suspends UK Repatriation Flights as Middle East Travel Disruption Deepens
US Forces Prepare Ordnance at RAF Fairford as Strategic Bombers Deploy for Middle East Operations
Nigel Farage Faces Criticism After Saying Britain Should Stay Out of Iran War
Landmark UK Trial Begins Over Sony’s PlayStation Store Pricing
UK High Court Rejects Bid to Challenge Britain’s Chagos Islands Agreement With Mauritius
Finnish Duo Triumphs in England’s Annual Wife-Carrying Race, Winning a Barrel of Ale
How U.S. and UK National Security Strategies Are Reshaping the Global Business Landscape
Green Party Gains Momentum as Labour Shifts Toward the Political Centre
Royal Navy Destroyer HMS Dragon Sets Sail for Eastern Mediterranean as Regional Tensions Rise
UK Homebuilder Persimmon Warns Iran Conflict Could Dent Property Buyer Confidence
Roman Abramovich Signals Legal Fight if UK Seeks to Seize Chelsea Sale Funds
UK Ready to Back Emergency Oil Reserve Release as Middle East Conflict Pushes Prices Higher
Study of 40,000 Articles Sparks Debate Over Alleged Anti-Muslim Bias in UK Media
US and UK Army Chiefs Strengthen Cooperation on the Future of Armored Warfare
Britain’s Search for the Next ARM Intensifies as Startups and Investors Target the Semiconductor Frontier
Three US Strategic Bombers Arrive at RAF Fairford as Iran Conflict Intensifies
Cancer Death Rates in the UK Fall to the Lowest Level on Record
UK Government Bond Yields Retreat Slightly After Sharp Spike Triggered by Middle East Conflict
UK Chancellor Warns Middle East War Could Push Inflation Higher
UK Prime Minister Warns Iran Conflict Could Drive Up Prices and Threaten Economic Stability
Trump Declines UK Offer to Deploy Aircraft Carriers to Middle East Amid Iran Conflict
Prince Harry and Meghan Markle to Return to Australia After Seven Years for Philanthropic and Business Engagements
UK Government Signals Independence From Washington as Cooper Says Britain Does Not Agree With Trump on Every Issue
UK Experts Warn AI Chatbots Are Fueling Surge in Claims of Organised ‘Satanic’ Ritual Abuse
UK Political Parties Divided Over Strategy as Iran Conflict Reshapes Foreign Policy Debate
Britain Discloses Secret Military Repair Hubs Operating Inside Ukraine
Trump Says US No Longer Needs UK Carrier Support After Delayed Offer Amid Iran Conflict
Why Britain Has Become Involved in the US-Israel Military Campaign Against Iran
UK Gas Storage Falls to Under Two Days as Iran Conflict Jolts Global Energy Markets
UK Warned to Brace for Economic Shock as Iran War Drives Global Energy Price Surge
Starmer and Trump Hold First Call After Public Dispute Over Iran Conflict
UK Dentists Returned £1.3 Billion to Government as Shift Toward Private Care Accelerates
Expert Warns UK Must Build Emergency Food Stockpiles to Prepare for Climate Shocks or War
UK Plans Charter Flight to Evacuate British Nationals from Gulf as Regional Conflict Disrupts Air Travel
Families of Zimbabwe’s Liberation Fighters Call on Britain to Help Locate Skulls Taken During Colonial War
Iran’s Ambassador Warns Britain to ‘Be Very Careful’ Over Deeper Role in Expanding Middle East War
UK Military Leadership Defends Britain’s Defensive Role in Expanding Middle East Conflict
×