Kate Hanaghan, chief research officer at IT analyst house TechMarketView, said comparing the performance of the two suggests Microsoft is regaining some of the ground it previously lost to Amazon in the cloud. "It's the hottest company in the world right now hands down and they seem pretty unstoppable".
Its sales jumped 38pc year-on-year, hitting $60.5bn in Q4 of 2017, compared with $43.7bn in the same time period in 2016 and operating income increased 69pc to $2.1bn in the fourth quarter in comparison to $1.3bn in Q4 of 2016. Looking at 2017 as a whole, roughly 10 per cent of Amazon's entire revenue came from AWS.
Amazon Exceeds Analyst Predictions, Posts its Highest Q4 Profits Ever
These investments have been directed towards building warehouses, strengthening logistics and increasing product assortment. Sales eclipsed estimates, rising 38 percent to $60.5 billion in the quarter. Operating income of $2.1 billion was up 69% over the 2016 quarter.
Analysts on average were expecting just US$1.85 per share, Thomson Reuters I/B/E/S said. This was partly due to a tax cut that benefited Amazon to the tune of $789 million. Advertising and other revenue rose 62 percent to $1.74 billion.
Amazon's largest money spinner is unsurprisingly its e-commerce business. The program is meant to keep shoppers engaged with the website.More news: Huntington Bancshares Incorporated (HBAN) has its outstanding shares of 1.07 Billion
If you thought Amazon was adding its Alexa voice assistant to too much stuff, you probably haven't seen anything yet.
Still, Amazon's profits are modest for a company of its size. Wall Street has estimated the revenue to be $48.7 billion. It has grown into a profitable business because Amazon doesn't take on the risks associated with owning inventory, said Tom Forte, an analyst at DA Davidson & Co. He said Amazon had a "monster Black Friday and Cyber Monday".More news: Fed approve HIP work requirement, drug treatment
Often the question for investors is how quickly Bezos will spend his company's money.
North America e-commerce fourth quarter sales were 62 percent of revenue with global representing 30 percent. The tech giant is partnering with Warren Buffett's Berkshire Hathaway and JPMorgan Chase to try to tackle soaring health care costs.
The firm also trumpted the success of its Alexa voice assistant and Echo line of smart speakers, which sold tens of millions of devices over the previous year.More news: Conor McGregor 'over the moon' for Ronda Rousey joining the WWE