Amazon (AMZN) Beats Wall Street Estimates with Strong Q1 Earnings, AWS Business on Track to Hit $100 Billion in Revenue
In a stunning display of financial prowess, Amazon (AMZN) reported first quarter earnings that surpassed Wall Street estimates on both the top and bottom lines, propelling the retail giant’s shares up by as much as 5% in after hours trading.
Fueling this impressive performance was Amazon’s cloud computing segment, Amazon Web Services (AWS), which delivered a stellar showing. The company proudly announced that its industry-leading AWS business is on track to generate a whopping $100 billion in revenue annually.
Here are some key metrics from Amazon’s fiscal first quarter, according to data from Bloomberg:
– Net Sales: $143.3 billion vs. $142.6 billion expected
– Adjusted earnings per share: $0.98 vs. $0.83 expected
– Amazon Web Services: $25 billion vs. $24.1 billion expected
– Advertising: $11.8 billion vs. $11.8 billion expected
CFO Brian Olsavsky revealed that Amazon’s overall capital expenditures (capex) are set to significantly increase this year, driven by higher infrastructure costs to support the growth of AWS, including generative AI. The company’s $14 billion in capex for the quarter is expected to rise in future periods, as demand for AWS remains strong.
Amazon’s stellar report comes on the heels of impressive earnings from its cloud rival Microsoft (MSFT) and AI competitor Alphabet (GOOG, GOOGL). The tech giant has been making strategic investments in AI, including a recent injection of $2.75 billion into AI startup Anthropic, bringing its total investment to $4 billion.
With its stock up about 20% for the year and a strong position in the cloud computing and AI markets, Amazon continues to solidify its status as a tech powerhouse. Investors are eagerly watching as the company leverages its heft in cloud computing to gain an edge in the burgeoning AI market.
Stay tuned for more updates on Amazon’s financial performance and market moves as the tech giant continues to make waves in the industry.
For more financial and business news, follow reporter Hamza Shaban on Twitter @hshaban and visit Yahoo Finance for the latest stock market updates and in-depth analysis.
