Amazon (AMZN) Eclipsed Wall Street’s Expectations

Amazon’s earnings clobbered what the Street had been expecting in the last quarter. The company not only reported amazing retail business this year but also dominated in the cloud industry with better than anticipated Amazon Web Services (AWS) sales.

For Q2, Amazon posted $2.89 billion in AWS net sales in the second quarter. This came in above the $2.83 billion expected by a StreetAccount consensus estimate. According to the company, this was a growth of 58 percent year-over-year.

It was in the second quarter that Amazon also snagged Salesforce. Salesforce selected Amazon as its preferred public cloud infrastructure provider, the company said.

This is partnership that’s key in helping Amazon keep its lofty place over companies that have a long history of business services.

According to independent analyst company Canalys, they estimate that AWS accounts for 30.4 percent of total cloud infrastructure services spending. AWS, combined with Azure, Google Cloud and IBM, own 60.5 percent combined of the rapidly-growing $9.5 billion market, Canalys said.

The e-commerce website posted 29.9 percent operating margins as a percent of net sales on its cloud business, before stock-based compensation and other

Disclaimer: We have no position in Amazon.com, Inc. (NASDAQ: AMZN) and have not been compensated for this article.