Amazon reported strong profits and revenue growth

Amazon is expected to post a big increase in profits and revenues in the second quarter thanks to growth in cloud services and Prime memberships.

Analysts expect the e-commerce giant to post adjusted earnings of $2.50 per share on Thursday, significantly higher than the 40 cents per share it earned in the same quarter last year. Revenues are projected to reach $53.27 billion, which would represent growth of 40%.

The forecast offers an optimistic outlook for Amazon’s cloud computing division. Wall Street expects Amazon Web Services revenue to be $5.98 billion, up from $4.1 billion a year ago, according to FactSet.

Amazon’s revenue also increased with the addition of Whole Foods, which it acquired last year.

Investors watch Amazon’s quarterly report for details on spending, including Prime Video content. The company has made heavy investments in original programming and other video content as it competes with video streaming services like Netflix. According to TheStreet, in the first quarter, Amazon reported that its spending on technology and content increased by 40%.

Amazon CEO Jeff Bezos first revealed in April that the company had more than 100 million paid members of its Prime subscription service, which includes free shipping, video streaming and other benefits.

Amazon has raised the annual price of a Prime subscription to $119 from $99. The increase took effect in May for new members.

Amazon shares have gained about 59% since the beginning of the year. On Wednesday, the day before Amazon’s earnings release, the company’s shares rose 1.9%.

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