Amazon announced a continued slowdown in its cloud computing subsidiary AWS on Thursday, but higher-than-expected revenue and earnings for the first quarter propelled its shares up in after-hours trade.
The Seattle-based corporation recorded $127.4 billion in revenue for the January-March quarter, a 9% increase over the previous year’s figure of $116.4 billion. FactSet polled analysts, who predicted $124.6 billion.
Profits were $3.2 billion, or 31 cents per share, more significant than the $2.24 billion predicted by industry analysts.
It’s also a substantial increase over the same period last year, when the e-commerce behemoth recorded its first quarterly loss in years, primarily due to a decrease in its investment in the electric vehicle.
In after-hours trading, Amazon’s shares increased by 9%.
The results announcement on Thursday concludes a busy earnings week for big technology companies.
Facebook parent Meta exceeded profit and revenue projections on Wednesday, causing its stock to rise in after-hours trade.
Microsoft reported a profit increase on Tuesday, mainly to a solid performance in its cloud division Azure, which has previously had some growth slowdowns.
Google claimed a 28% increase in cloud revenue, resulting in the company’s first operating profit. However, it rose slower than in the same period the previous year.
Amazon CEO Andy Jassy stated in his annual shareholder letter released earlier this month that AWS, the cloud market leader, is suffering short-term difficulties as businesses become more conservative in spending amid increased economic uncertainty.
The business reported Thursday that the segment gained 16% in the first quarter, beating analyst estimates but falling short of the 37% growth rate recorded the previous year.
According to company leaders, buyers have become more mindful of spending and are attempting to save money wherever possible.
Furthermore, many shoppers have abandoned their pandemic-fueled reliance on e-commerce, which resulted in Amazon reporting record revenue figures at the time.
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