Photo: Leon Neal/Getty Images

Amazon announced strong quarterly results Thursday after the market close, with $6.47 earnings per share on an expected $4.04 (per FactSet) and total revenue of $87.44 billion on $86.02 billion expected.

Why it matters: Wall Street has wondered whether Amazon's huge investments in one-day delivery and cloud services would depress its financial performance. This quarter, at least, gave investors a positive surprise.

Details: Amazon CEO Jeff Bezos announced Thursday that its Amazon Prime subscription offering has now reached 150 million users globally, which is just shy of Netflix’s 167 million global paid subscribers.

  • But unlike Netflix, Amazon didn’t offer a geographical breakdown of those subscribers. (The majority of Netflix subscribers are international.)
  • That number is up from “over 100 million” which was last reported almost two years ago.
  • In a statement, Bezos touted the success of Amazon Studios, the entertainment division that creates and acquires thousands of movies and TV shows offered exclusively to Prime members.
  • He didn’t offer any exact viewership metrics, but noted that Prime members watched twice as many hours of original programming (programming produced by Amazon Studios) last quarter than the quarter of the prior year.

On the advertising front, Amazon reported that its “other” category, which is mostly made up of advertising revenue, was up 41% year-over-year to over $4.7 billion.

  • Amazon’s ad business, while growing rapidly, is notably different from Google’s in that it’s mostly marketers paying to promote their products in search, and thus it's more like a fee to participate in the marketplace rather than true low-funnel advertising. To maintain ad growth, Amazon has experimented with more brand ads, especially video.
  • Amazon also announced that its Fire TV hardware product, which competes with Roku and Apple TV, now has more than 40 million active users worldwide.

Go deeper

The national security risks hiding in Trump's debts

Illustration: Aïda Amer/Axios

The blockbuster New York Times report on President Trump’s taxes reveals that the president is $421 million in debt, with more than $300 million coming due during Trump’s potential second term — and the identities of the president’s creditors remain unknown.

Why it matters: If some, or all, of this debt is held by foreign actors, it raises serious national security implications.

27 mins ago - World

House report: U.S. intelligence agencies have failed to adapt to China threat

Xi Jinping and other Chinese politicians and delegates listen to the national anthem duirng the closing of the 19th Communist Party Congress in 2017. Photo: Lintao Zhang/Getty Images

The House Intelligence Committee on Wednesday released a report finding that the U.S. intelligence community has failed to adapt to the growing threat from China, arguing that it will struggle to compete on the global stage for decades to come if it does not implement major changes.

The big picture: The 200-page report, based on thousands of analytic assessments and hundreds of hours of interviews with intelligence officers, determined that the intelligence community's focus on counterterrorism after 9/11 allowed China "to transform itself into a nation potentially capable of supplanting the United States as the leading power in the world."

Updated 30 mins ago - Politics & Policy

Tim Scott says Trump "misspoke" when he told Proud Boys to "stand by"

Photo: Bonnie Cash/Pool/AFP via Getty Images

Sen. Tim Scott (R-S.C.) told reporters on Wednesday that he believes President Trump "misspoke" when he told the far-right "Proud Boys" group to "stand back and stand by" in response to a question about condemning white supremacy at the first presidential debate.

Catch up quick: Moderator Chris Wallace asked Trump on Tuesday, "Are you willing, tonight, to condemn white supremacists and militia groups and to say that they need to stand down?" Trump asked who specifically he should condemn, and then responded, "Proud Boys, stand back and stand by. But I'll tell you what, somebody's got to do something about antifa and the left."

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