Head of WhatsApp to Leave Company

The head of popular messaging service WhatsApp is planning to leave the company because of a reported disagreement over how parent company Facebook is using customers’ personal data. 

WhatsApp billionaire chief executive Jan Koum wrote in a Facebook post Monday, “It’s been almost a decade since (co-founder) Brian (Acton) and I started WhatsApp, and it’s been an amazing journey with some of the best people. But it is time for me to move on,” he said.

Koum did not give a date for his departure.

The Washington Post reported Monday that Koum is stepping down because of disagreements over Facebook’s attempts to use the personal data of WhatsApp customers, as well as efforts to weaken the app’s encryption. 

Action left the company last fall and since then has become a vocal critic of Facebook, recently endorsing a #DeleteFacebook social media campaign.

The Post, citing people familiar with internal WhatsApp discussions, said Koum was worn down by the differences in approach to privacy and security between WhatsApp and Facebook.

When WhatsApp agreed to the company’s sale to Facebook in 2014 for $19 billion, it said WhatsApp would remain an independent service and would not share its data with Facebook. 

However, 18 months later, Facebook pushed WhatsApp to change its terms of service to give the social network access to the personal data of WhatsApp users. 

WhatsApp is the largest messaging service in the world with 1.5 billion monthly users. However, Facebook has been struggling to find ways to make enough money from the app to prove its investment was worth the cost. 

Facebook has faced intense criticism since March when news broke that the personal data of millions of Facebook users had been harvested without their knowledge by Cambridge Analytica, a British voter profiling company that U.S. President Donald Trump’s campaign hired to target likely supporters in 2016.

Facebook chief executive Mark Zuckerberg testified before Congress earlier this month and apologized for inadequately protecting the data of millions of social media platform users. 

Facebook also recently announced it would allow all its users to shut off third-party access to their apps and said it would set up “firewalls” to ensure users’ data was not unwittingly transmitted by others in their social network.

Some members of Congress said Facebook’s actions to rectify the situation did not go far enough and have called for greater regulation of the internet and social media.

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Paper Plane Protesters Urge Russia to Unblock Telegram App

Thousands of people marched through Moscow, throwing paper planes and calling for authorities to unblock the popular Telegram instant messaging app on Monday.

Protesters chanted slogans against President Vladimir Putin as they launched the planes – a reference to the app’s logo.

“Putin’s regime has declared war on the internet, has declared war on free society… so we have to be here in support of Telegram,” one protester told Reuters.

Russia began blocking Telegram on April 16 after the app refused to comply with a court order to grant state security services access to its users’ encrypted messages.

Russia’s FSB Federal Security service has said it needs access to some of those messages for its work, that includes guarding against militant attacks.

In the process of blocking the app, state watchdog Roskomnadzor also cut off access to a slew of other websites.

Telegram’s founder, Russian entrepreneur Pavel Durov, called for “digital resistance” in response to the decision and promised to fund anyone developing proxies and VPNs to dodge the block.

More than 12,000 people joined the march on Monday, said White Counter, a volunteer group that counts people at protests.

“Thousands of young and progressive people are currently protesting in Moscow in defense of internet freedom,” Telegram’s Durov wrote on his social media page.

“This is unprecedented. I am proud to have been born in the same country as you. Your energy changes the world,” Durov wrote.

Telegram has more than 200 million global users and is ranked as the world’s ninth most popular mobile messaging service.

Iran’s judiciary has also banned the app to protect national security, Iranian state TV reported on Monday.

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State TV: Iran’s Judiciary Bans Using Telegram App

Iran’s judiciary has banned the popular Telegram instant messaging app to protect national security, Iran’s state TV reported Monday.

“Considering various complaints against Telegram social networking app by Iranian citizens, and based on the demand of security organizations for confronting the illegal activities of Telegram, the judiciary has banned its usage in Iran,” TV reported.

The order was issued days after Iran banned government bodies from using Telegram, which is widely used by Iranian state media, politicians, companies and ordinary Iranians.

A widespread government internet filter prevents Iranians from accessing many sites on the official grounds that they are offensive or criminal.

But many Iranians evade the filter through use of VPN software, which provides encrypted links directly to private networks based abroad, and can allow a computer to behave as if it is based in another country.

“The blocking of Telegram app should be in a way to prevent users from accessing it with VPN or any other software,” Fars said. The app had over 40 million users in Iran.

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UN Agency That Fights AIDS Reopens Sexual Harassment Case

The U.N. agency that fights AIDS says that it’s reopening a sexual harassment investigation against a top official, saying additional allegations have emerged against him.

UNAIDS says it was reopening the investigation into a case against deputy executive director Luiz Loures that centers on a complaint from a lower-level employee during a stay at a Bangkok hotel in May 2015. Loures has denied the allegations.

 

A UNAIDS statement Monday said that World Health Organization Director-General Tedros Ghebreyesus requested that the U.N.’s internal oversight office conduct the new investigation. The WHO office of internal oversight services in September threw out the case, citing “insufficient evidence.” Critics say the review process was flawed.

 

UNAIDS didn’t immediately give specifics about the new allegations against Loures.

 

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Recycling Oyster Shells Improves Water Quality, Oyster Population

It’s another busy day for Tony Price, who has a list of around two dozen restaurants and other seafood businesses to visit, to pick up discarded oyster shells. 

Fast and energetic, he moves barrels of smelly shells from restaurants’ back storage areas to his truck. “We do seven pickups a week, plus events on weekends. I’d say we’re getting somewhere between 500 and even 800 bushels a week,” he says.

That’s the beginning of a recycling process, a journey for the oyster shell to return to the water. 

Price is the operation manager with Shell Recycling Alliance, a program run by the Oyster Recovery Partnership.

Last year, the program collected 33,400 bushels of oyster shells from restaurants all around the Chesapeake Bay area. Every half shell collected becomes a new home for around 10 baby oysters. 

On the menu

Oysters have been a popular item on the menu of Mike’s Crab House since 1958.

The famous seafood restaurant, in Riva, Maryland, is one of more than 330 restaurants in Maryland, Virginia and Washington D.C. that now recycle their oyster shells.

Tony Piera says he and Mike’s other owners joined the program four years ago.

“It’s a win-win for us. It’s a win-win for the environment,” he explains. “Before we did it, the trash would come and get them. Now, the Oyster Recovery comes two days a week, picks them up.”

Mike’s Crab House is one of the top ten contributors to the program this year, with more 822 bushels of recycled oyster shells in 2017.

“I think I’m getting more customers here because they know we recycle here,” Piera says. “They know it’s good for the environment, the Chesapeake Bay.”

Saving oysters, saving the bay

The Oyster Recovery Partnership began in 2010 with 22 restaurants. Spokeswoman Karis King says the program has been well received and is expanding.

“We continue to grow and expand from us basically knocking on doors, trying to get people involved,” she adds. “It’s turned out into getting requests every single day, ‘How do we become part of this program?’ ‘I’m really excited about the program.’ ‘I want to do my part.’ ‘I want to be sustainable.’”

The recycling program offers incentives to encourage more restaurants to join. “In Maryland, tax credits that restaurants can claim based on how many bushels they recycle. We also provide them with support, restaurant training to talk to the servers about what the program is and why it’s important.” 

Multi-step recycling process

Done with his day’s rounds, Tony Price heads to a facility where the first phase of the process – cleaning the shells – begins.

“The shell is taken down here, it’s aged, it sits for about a year. It dries out, sun, wind, rain,” he explains. “(It) kind of decomposes a little all the tissue that’s left. Behind me is the shell washer. There are jets of a high pressure water from a pressure water system tumbles the shells, just give it a nice cleaning. So, it comes out brilliant white as opposed to the stuff on the other side is the raw shell. It’s a little bit grayer.” 

Then, the shells go to the University of Maryland’s Center for Environmental Science Horn Point Oyster Hatchery for further processing. 

Hatchery manager, Stephanie Alexander, says her team gets tiny baby oysters, called spat, ready to be attached to the clean oyster shells. “We get the adult oysters, we spawn them and create the babies. Then, we grow those baby oysters for two to three weeks. Then they mature and we attach them to the shell to become spat on shell.”

Now firmly attached to the recycled natural shells, the spat are put back in the Chesapeake Bay. Here, they will grow and flourish, increasing the oyster population.

Alexander says new generations of oysters are crucially important for the health of the bay. They filter the water.

“That kind of makes them the bay’s kidneys,” she explains. “The cleaner water you have, the more sunlight can penetrate, the more grasses you end up having, which results in nursery area for fish and crabs when they are small and juvenile so they don’t get eaten. They also are spawning and reproducing, adding to the population. They (oyster shells) create habitat for many, many creatures. They are kind of the coral reefs of the bay.”

The success of the Recycling Shell Alliance program encourages more restaurants to join. That’s good for the bay and for people who love to eat oysters.

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US Wireless Carriers T-Mobile, Sprint Announce Merger

The third and fourth biggest U.S. wireless carriers, T-Mobile and Sprint, said Sunday they plan to merge, the third attempt they’ve made to join forces against the country’s two biggest mobile device firms, Verizon and AT&T.

The deal, if it happens this time, calls for T-Mobile to buy Sprint for $26 billion in an all-stock deal.

The combined carrier would have 126 million customers, still third in the pecking order of U.S. wireless carriers, but closer to the top two. Verizon has more than 150 million customers, and AT&T more than 142 million.

The latest agreement caps four years of on-and-off talks between T-Mobile and Sprint. Sprint dropped its bid for T-Mobile more than three years ago after U.S. regulators objected and another proposed merger fell through last November.

The new deal could help the combined companies slash costs to make the new business more competitive with industry leaders. But customers could also pay more for wireless coverage because the combined company may not have to offer as many deals to attract new customers.

U.S. regulators at the Federal Communications Commission are expected to take a close look at the merger’s effects on customers and whether the deal violates antitrust laws.

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Parenting of the Future? Pick an Embryo

The future of parenting may see a big change as scientists and ethicists have a startling prediction about how children will be conceived in the future. Thanks to biomedical advances, parents may be able to choose a child from hundreds of embryos based on their DNA profile. Faith Lapidus reports.

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China Rapidly Expanding its Technology Sector

If you want your technology sector to expand rapidly, it pays to have strong support from the government, easy access to bank loans and a large market, hungry for your products. All this is available in China, where technology companies are expanding at a rapid pace — making other countries, including the U.S. — a bit uneasy. VOA’s George Putic reports.

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Autism Poses Special Challenges in Africa

The 4-year-old Cote d’Ivoire boy couldn’t walk, speak or feed himself. He was so unlike most other kids that his grandparents hesitated to accept him. The slightly older Kenyan boy was so restless that his primary-school teachers beat him, until they discovered he was a star pupil.

The two children reveal different faces of autism — and how society sometimes reacts to the condition.

Videos of the boys appear in “Autism: Breaking the Silence,” a special edition of VOA’s weekly Straight Talk Africa TV program. It was recorded Wednesday before a small studio audience of people who live with the condition or deal with it professionally.

About 45 minutes into the program, Benie Blandine Yao of Cote d’Ivoire holds her 4-year-old son, who has autism.

The program’s goal: to help demystify and deepen understanding of autism spectrum disorder. It affects the brain’s normal development, often compromising an individual’s ability to communicate, interact socially or control behavior. The condition can range from mild to severe.

New CDC findings

New findings released this week by the Centers for Disease Control and Prevention indicate an increase in autism’s prevalence in the United States.

The agency estimates it affects 1 in 59 children, up from 1 in 68 several years ago and 1 in 150 almost two decades ago. The research is based on studies of more than 300,000 8-year-olds in 11 U.S. states.

Globally, one out of every 160 children has an autism spectrum disorder, the World Health Organization reports. Rates of autism are harder to determine in low- and middle-income countries, including those in sub-Saharan Africa with limited access to clinicians.

Everywhere, “poor people get diagnosed later,” Scott Badesch, president of the Autism Society of America, said in a video overview that set the stage for discussion. “… There’s more services today than ever before but there’s nowhere near the services needed for all who need help.”

A complex condition

Stigma and superstition can heighten the challenges.

In parts of Africa, youngsters with autism “are labeled as devils and they’re not diagnosed and they are not given treatment,” Bernadette Kamara, a native of Sierra Leone who runs BK Behavioral Health Center in a Washington suburb, commented from the audience.

Some people believe the disorder is punishment for a parent’s bad behavior or an affliction that can be prayed away, said Mary Amoah, featured with 15-year-old daughter Renata in a related VOA video. 

 

“They don’t understand this is purely a medical condition. It can happen to anyone regardless of your background,” said Amoah, coordinator at a treatment center in Accra, Ghana, for children with disabilities. “A lot needs to be done in our part of the world in terms of education, acceptance and understanding.”

Causes

Researchers haven’t determined the exact cause of autism, though they cite genetic and environmental factors. 

Panelist Susan Daniels, who directs the office of autism research coordination for the National Institute of Mental Health, part of the U.S. National Institutes of Health, stressed that research supported by the NIH and CDC shows no link to childhood vaccines.

Though the condition has no cure, early intervention can improve the quality of life for people with autism and their families.

Parents need to observe their children closely from infancy, advised Dr. Usifo Edward Asikhia, clinical director of the International Training Center for Applied Behavior Analysis in Lagos, Nigeria.

“When you have a baby at the age of 12 [months] that cannot babble, that’s a signal,” he said. Another is an inability to grasp objects, a sign of low muscle tone common in autism.

Other hallmarks include lack of eye contact or sensitivity to sounds, Daniels said. She added that a definitive diagnosis “can’t really be done accurately until age 2. But most kids aren’t diagnosed by then.”

“Children with autism in Africa tend to be diagnosed around age 8, about four years later, on average, than their American counterparts,” the Spectrum Autism Research News site reported in December.

​Call for cultural sensitivity

Some of those indicators could mislead when assessing African children, said panelist Morenike Giwa Onaiwu, a Texas-based member of the Autism Women’s Network.

“In a lot of African cultures, it’s customary not to make direct eye contact. That’s not a red flag,” said Onaiwu, whose parents came from Nigeria and who learned she was autistic only when two of her own six kids were positively identified with autism. “In terms of not babbling? We speak when we have something to say. … Certain things culturally may be missed because of the way diagnostic criteria are viewed through Western standards.”

While autism generally is associated with low IQ, the condition also affects people with high mental abilities. 

If they can “express themselves in some way, they’re actually geniuses,” said panelist Tracy Freeman, a Washington-area physician who has an autistic child. “Their challenge is neurodiversity and getting people to recognize their intelligence.”

At one point in the discussion, moderator Linord Moudou noticed Onaiwu twisting a metal coil in her hands. Onaiwu explained that the repurposed Christmas ornament is a “stimming” device for repetitive motion that provides relaxing sensory stimulation.

“It helps to calm me,” Onaiwu said. She has other strategies: “Sometimes you might see me rocking. … This kind of helps me to navigate in the neurotypical world.”

Growing role for governments?

Asikhia said families dealing with autism had few public supports in Nigeria or elsewhere in Africa. Most schools lack training in developmental delays that should be flagged for physicians, he said. 

“Those teachers just don’t know what to do,” he added.

Many African countries lack laws ensuring public education or health interventions for youngsters with autism or other developmental disorders.

But Chiara Servili, a child neuropsychiatrist and WHO technical adviser on mental health, sees rising interest. Representatives of more than 60 countries supported a 2014 WHO resolution urging member nations to develop policies and laws to ease “the global burden of mental disorders” and to devote “sufficient human, financial and technical resources.”

Many governments once focused just on improving child mortality rates, she said in a phone interview. Now, there’s “much more awareness not only that they survive but thrive. There is a new focus on early childhood development.”

The WHO is trying to improve supports for family caregivers as well as for teachers, social workers and other professionals in positions to encourage clinical evaluation, Servili said.

With international partners, the organization has developed a guide for caregivers, usually parents, to nurture children with developmental issues. For instance, “we teach them strategies so they can better engage children in play. Sit down at the level of the child. Provide some toys or some object from the house, observe what the child is doing and try to follow the lead,” Servili said. “… Reinforce any attempt to communicate.”

For a copy of the WHO Caregiver Skills Training program, contact Servili at servilic@who.org.

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Can a River Model Save Eroding Mississippi Delta?

Thousands of years of sediment carried by the Mississippi River created 25,000 square kilometers of land, marsh and wetlands along Louisiana’s coast. But engineering projects stopped the flow of sediment and rising seas thanks to climate change have made the Mississippi Delta the fastest-disappearing land on earth. Louisiana State University researchers created the river system in miniature to try to stop the erosion and rebuild the delta. Faith Lapidus narrates this report from Deborah Block.

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Genetics Help Spot Food Contamination

A new approach for detecting food poisoning is being used to investigate the recent outbreak of E.coli bacteria in romaine lettuce grown in the U.S. state of Arizona. The tainted produce has sickened at least 84 people in 19 states. The new method, used by the Centers for Disease Control and Prevention, relies on genetic sequencing. And as Faiza Elmasry tells us, it has the potential to revolutionize the detection of food poisoning outbreaks. VOA’s Faith Lapidus narrates.

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4 Chinese Charged in Fentanyl Trafficking Case

The U.S. Justice Department on Friday announced charges against four Chinese nationals and six co-conspirators for trafficking large quantities of the synthetic opioid fentanyl into the United States, part of the Trump administration’s crackdown on an abuse epidemic that has killed tens of thousands of Americans.

The charges, handed down by a federal grand jury in North Dakota in January and March, were unsealed and announced by Attorney General Jeff Sessions in North Dakota. In all, 32 people have been charged in the case, an operation Sessions described as “an elaborate and sophisticated conspiracy” to sell fentanyl in 11 U.S. states, resulting in overdose deaths in at least three states.

“Today’s indictments are a step toward dismantling an alleged international fentanyl trafficking operation and eventually ending this nation’s unprecedented drug crisis,” Sessions said.

The charges followed the first indictments of Chinese nationals for fentanyl trafficking, announced in October. Sessions said one of two indictments unsealed last year began with the overdose death in January 2015 of a teenager in Grand Forks, North Dakota, a tragedy that allowed prosecutors to trace the source of the fentanyl to China.

Chinese supply

“Most fentanyl doesn’t come from here,” Sessions said. “The vast majority is made in China and then shipped here, either through the mail or brought across the porous Southern border.”

The Justice Department identified the operation’s ringleader as Jian Zhang, who had been previously indicted in connection with the fentanyl trafficking case. U.S. prosecutors alleged that Zhang ran an organization that manufactured fentanyl in at least four labs in China and sold it to American customers over the internet.

All five Chinese nationals remain at large.Three co-conspirators have been arrested in three different states.

The Treasury Department designated Zhang, 39, as a “significant foreign narcotics trafficker” under the Kingpin Act and sanctioned a biotechnology firm he owns. The agency also sanctioned four other Chinese nationals.

The Kingpin Law allows prosecutors to seek the death penalty for traffickers of large quantities of illegal drugs. Sessions recently urged U.S. prosecutors to seek the death penalty in drug kingpin cases.

The U.S. substance abuse epidemic killed nearly 64,000 Americans in 2016, the most on record, making drug overdoses the No. 1 killer of Americans under age 50, according to the Centers for Disease Control and Prevention.

The deadly epidemic is fueled by opioids such as heroin and prescription painkillers. But the “top killer opioid” is fentanyl, a synthetic opioid that is 30 to 50 times more potent than heroin and 50 to 100 times stronger than morphine. Synthetic opioids like fentanyl killed about 20,000 Americans in 2016, Sessions said. 

Federal priority

The Trump administration has made ending the drug crisis a priority. In October, Trump declared the opioid epidemic a national public health emergency, a declaration he extended this week for an additional 90 days.

Sessions said the Justice Department was “taking aggressive steps to prosecute those who would profit off of addiction, with a particular focus on fentanyl,” and had tripled the number of fentanyl prosecutions in 2017 compared with 2016.

Last week, the department announced charges against dozens of people in a takedown of a major fentanyl and heroin distribution network. 

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EU Moves to Further Ban Bee-Killing Pesticides

European Union countries backed a proposal Friday to extend a partial ban on the use of insecticides known as neonicotinoids that studies have shown are harmful to bees.

The full outdoor ban will be on the use of three active substances: imidacloprid, developed by Bayer CropScience; clothianidin, developed by Takeda Chemical Industries and Bayer CropScience; as well as Syngenta’s thiamethoxam.

“All outdoor uses will be banned and the neonicotinoids in question will only be allowed in permanent greenhouses where exposure of bees is not expected,” the European Commission said in a statement.\

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The Store Where Everything Is Made in America

From T-shirts, socks and toys to knives and lanterns, a store in upstate New York takes pride in only selling goods that are made in America. Olga Loginova from VOA’s Russian service talked to the store owner about his business, which emerged after the 2008 financial crisis.

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Consumers Close Wallets, Trim US 1st Quarter Growth

The U.S. economy likely slowed in the first quarter as growth in consumer spending braked sharply, but the setback is expected to be temporary against the backdrop of a tightening labor market and large fiscal stimulus.

Gross domestic product probably increased at a 2.0 percent annual rate, according to a Reuters survey of economists, also held back by a moderation in business spending on equipment as well as a widening of the trade deficit and decline in investment in homebuilding.

Those factors likely offset an increase in inventories. The economy grew at a 2.9 percent pace in the fourth quarter. The government will publish its snapshot of first-quarter GDP Friday at 8:30 a.m. 

Don’t lose sleep

The anticipated tepid first-quarter growth will, however, probably not be a true reflection of the economy, despite the expected weakness in consumer spending. First-quarter GDP tends to be soft because of a seasonal quirk. The labor market is near full employment and both business and consumer confidence are strong.

“I would not lose sleep over first-quarter GDP, there is the residual seasonality issue,” said Ryan Sweet, a senior economist at Moody’s Analytics in West Chester, Pennsylvania. “Overall the economy is doing very well and will continue to do well this year and into 2019.”

Economists expect growth will accelerate in the second quarter as households start to feel the impact of the Trump administration’s $1.5 trillion income tax package on their paychecks. Lower corporate and individual tax rates as well as increased government spending will likely lift annual economic growth to the administration’s 3 percent target, despite the weak start to the year.

Federal Reserve officials are likely to shrug off weak first-quarter growth. The U.S. central bank raised interest rates last month in a nod to the strong labor market and economy, and forecast at least two rate hikes this year.

Minutes of the March 20-21 meeting published earlier this month showed policymakers “expected that the first-quarter softness would be transitory,” citing “residual seasonality in the data, and more generally to strong economic fundamentals.”

Consumer spending lackluster

Economists estimate that growth in consumer spending, which accounts for more than two-thirds of U.S. economic activity, braked to below a 1.5 percent rate in the first quarter. That would be the slowest pace in nearly five years and follows the fourth quarter’s robust 4.0 percent growth rate.

Consumer spending in the last quarter was likely held back by delayed tax refunds and impact of tax cuts. Rebuilding and clean-up efforts following hurricanes late last year probably pulled forward spending into the fourth quarter.

“Our new consumer survey found that 37 percent of consumers thought they didn’t get any extra income from the tax cut or did not know what to do with it,” said Michelle Meyer, head of U.S. economics at Bank of America Merrill Lynch in New York. “It is possible this means that there is a lag in the consumer response to tax cuts.”

Business spending

Business spending on equipment is forecast to have slowed after double-digit growth in the second half of 2017. The expected cooling in equipment investment partly reflects a fading boost from a recovery in commodity prices. Economists expect a marginal impact on business spending on equipment from rising interest rates and more expensive raw materials.

“While we do not expect rising rates to crush equipment spending, a slowdown nevertheless appears in store,” said Sarah House, a senior economist at Wells Fargo Securities in Charlotte, North Carolina. “Higher interest rates will hurt at the margin.”

Investment in homebuilding is forecast to have declined in the first quarter after rebounding in the October-December period. Government spending probably contracted after two straight quarterly increases. Spending is, however, expected to rebound in the second quarter after the U.S. Congress recently approved more government spending.

Trade was likely a drag on GDP growth for a second straight quarter after royalties and broadcast license fees related to the Winter Olympics boosted imports.

With consumer spending slowing, inventories probably accumulated in the first quarter. Inventory investment is expected to have contributed to GDP growth after subtracting 0.53 percentage point in the fourth quarter.

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Amazon Delivers Profits, a $20 Prime Hike, NFL Games

Amazon.com Inc. more than doubled its profit Thursday and predicted strong spring results as the world’s biggest online retailer raised the price for U.S. Prime subscribers, added U.S. football games and touted its cloud services for business.

The results showed the broad strength of the company, which has been expanding far beyond shipping packages, the business that has drawn the ire of U.S. President Donald Trump.

The forecast beat expectations on Wall Street, sending shares up 7 percent to a new record in afterhours trade and adding $8 billion to the net worth of Jeff Bezos, Amazon’s chief executive and largest shareholder.

Seattle-based Amazon is winning business from older, big box rivals by delivering virtually any product to customers at a low cost, and at times faster than it takes to buy goods from a physical store. It is expanding across industries, too, striking a $130 million deal to stream Thursday night games for the U.S. National Football League online and working to ship groceries to doorsteps from Whole Foods stores nationwide.

Sales jumped 43 percent to $51.0 billion in the quarter, topping estimates of $49.8 billion, according to Thomson Reuters.

Prime now $119

Prime, Amazon’s loyalty club that includes fast shipping, video streaming and other benefits, has been key to Amazon’s strategy. Its more than 100 million members globally spend above average on Amazon.

The company announced Thursday it will increase the yearly price of Prime to $119 from $99 for U.S. members this spring.

The fee hike is expected to add a windfall to Amazon’s subscription revenue, already up 60 percent in the first quarter at $3.1 billion.

“We do feel it’s still the best deal in retail,” Brian Olsavsky, Amazon’s chief financial officer, said on a call with analysts. He said the number of items Prime members can get within two days had grown fivefold since the last price increase four years ago.

Advertising and the cloud

Despite the surge in shopping, Olsavsky gave credit for Amazon’s $1.6 billion profit last quarter to two younger businesses: advertising and Amazon Web Services.

Revenue from third-party sellers paying to promote their products on Amazon.com was an unusually large bright spot during the quarter, with sales in the category, which includes some other items, growing 139 percent to $2.03 billion. This included $560 million from an accounting change.

Amazon Web Services (AWS), which handles data and computing for large enterprises in the cloud, won new business and saw its profit margin expand. It posted a 49 percent rise in sales from a year earlier to $5.44 billion, beating estimates.

Amazon remains the biggest in the space by revenue, and its stock trades at a significant premium to cloud-computing rival Microsoft Corp.

Amazon’s shares have also outperformed the S&P 500, rising 30 percent this year as of Thursday’s market close, compared with the S&P’s less than 1 percent decline.

More workers, spending

Notorious for running on a low profit margin, Amazon has still reaped rewards for shareholders as it has bet on new services like voice-controlled computing and has expanded across continents and industries.

Global headcount was up 60 percent from a year earlier at 563,100 full-time and part-time employees, thanks to a hiring spree and an influx of workers from Whole Foods Market.

The company plans to increase its video content spending this year, Amazon’s Olsavsky said, with a prequel to “The Lord of the Rings” in the works. The third quarter will also see extra spending to prepare for the busy holiday season.

Amazon is working with JPMorgan Chase & Co and Berkshire Hathaway Inc to determine how to cut health costs for hundreds of thousands of their employees.

And it is expanding its retail footprint outside the United States, particularly in India. Amazon’s international operating loss grew 29 percent to $622 million in the first quarter.

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