Amazon Beefs Up Alexa Offerings With Video Product, More Skills; Q1 Revenue Up 23%

Amazon highlighted Alexa launches and updates in its Q1 earnings release after markets closed Thursday, including the $179 Echo Look, a video version of the Echo speaker that’s billed as a shopping assistant to help users “look your best” by combining machine learning with advice from “fashion specialists.” The device also gives news, weather and traffic alerts. Amazon released an over-the-air software update for Amazon Tap, a portable version of the Echo, enabling the speaker to be controlled by voice rather than a tap on the microphone button, said the company. The Alexa Skills store has more than 12,000 skills, including ordering from GrubHub, listening to content from NPR, asking WebMD health-related questions and 300 smart home skills, it said. Net sales jumped 23 percent to $35.7 billion over Q1 2016, and net income rose to $724 million from $513 million. Wedbush Securities analyst Michael Pachter repeated an “outperform” rating on Amazon in a research note to investors, lowering FY 2017 revenue estimates to $168.1 billion, from $168.6 billion. Wedbush raised operating income estimates to reflect lower Amazon Web Services revenue, which was offset by better gross margin as Fulfilled by Amazon growth “continues unabated,” Pachter said. Barclays said in a research note Amazon Web Services Q1 growth was “ahead of expectations considering the concern around the 3-month impact of price cuts.” Shares closed up 6.6 percent Friday to $924.99.