From CNBC: 2024-04-30 21:20:36

Amazon reported a strong first quarter, with revenue up 13% to $143.31 billion, beating estimates. Earnings per share tripled to 98 cents, exceeding the 83-cent estimate. Operating income hit a quarterly record of $15.3 billion, well above expectations. The outlook for the second quarter was lower than expected, but further upside is expected.
Amazon’s cloud business and advertising revenue are driving growth. Cost control measures are improving operating expenses, leading to increased profitability. The e-commerce segment in North America saw a 12% sales increase and a 455% rise in operating income. Amazon’s fast-growing advertising business grew 24% to $11.8 billion in the first quarter.
Amazon’s investment in e-commerce logistics infrastructure and Prime membership benefits are keeping users engaged. The company’s cloud business, AWS, showed stellar performance in Q1 with a 17% sales increase to $25.04 billion. Operating profit margin expansion led to a nearly $2 billion boost to operating income. Andy Jassy remains optimistic about the long-term growth potential of AWS.
Amazon’s outlook for the second quarter projects net sales between $144 billion to $149 billion, with an expected operating income of $10 billion to $14 billion. This represents a strong expansion in operating margin compared to the same period in 2023. The company remains focused on growth and further reducing the cost-to-serve for e-commerce customers.



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