In the fourth quarter of 2015, Amazon.com Inc. posted a profit of $482 million, more than double its previous highest-earning quarter. In the two quarters since, profits continued to rise, to $513 million in the first quarter and $857 million in the second quarter. In the first six months of 2016, the company’s combined profit was $1.37 billion—no other half in Amazon’s history is in the same universe.
So after years of reporting little to no profit, Amazon is now posting record gains quarter upon quarter. At the same time, its expenses are growing faster—26.4% in the first half of 2016 versus 17.5% in the first half of 2015.
So what’s propelling Amazon into profitability? Let’s look at the numbers.
First, there’s revenue. Amazon’s compound annual growth rate from 2012 to 2015 was 20.5%.....
Here's a look at why Amazon is 'suddenly" in the money.