- Amazon (AMZN) stock dropped more than 3% in Thursday’s after-hours trading, despite reporting Q1 earnings of $1.59 per share, exceeding the $1.37 consensus estimate. Revenue rose 8.6% to $155.67 billion, reflecting solid growth but failing to offset investor concerns.
- AWS sales rose 16.9% to $29.27 billion, slightly below the 17.6% expected growth, while advertising revenue surged 19% to $13.92 billion. Operating income reached $18.4 billion, surpassing the $14–$18 billion guidance range.
- Amazon guided Q2 revenues to $159–164 billion and operating income to $13.0–17.5 billion, driven by innovations like Alexa+, Project Kuiper, and AWS enhancements.
Amazon (AMZN) stock fell 3.43% to $183.62 in Thursday’s after-hours trading, despite a strong first-quarter performance, highlighted by robust growth in its cloud computing and advertising divisions. The e-commerce giant reported earnings of $1.59 per share, surpassing the consensus estimate of $1.37 by $0.22, while revenues grew 8.6% year-over-year to $155.67 billion, aligning closely with the $155.15 billion expected. Key segments drove the results, with Amazon Web Services (AWS) sales rising 16.9% to $29.27 billion, slightly below the 17.6% expected growth, North America sales increasing 8% to $92.9 billion, and International sales growing 5% (8% on a constant currency basis) to $33.5 billion, complemented by a 19% increase in advertising services to $13.92 billion.
The company’s operating income reached $18.4 billion, exceeding its prior guidance range of $14 billion to $18 billion, highlighting operational efficiency and the high-margin contributions of AWS and advertising. Looking ahead, Amazon issued in-line guidance for the second quarter, projecting revenues of $159 billion to $164 billion against a consensus of $161.21 billion and operating income of $13.0 billion to $17.5 billion. CEO Andy Jassy emphasized the company’s focus on innovation, citing advancements like the next-generation Alexa+, faster Prime delivery, and the launch of Project Kuiper satellites to provide broadband to underserved rural areas. Additionally, developments in Trainium2 chips and Bedrock model expansions are enhancing AWS’s capabilities, enabling customers to train AI models more cost-effectively.
Amazon’s ability to balance its diverse business lines—e-commerce, cloud computing, and advertising—positions it as a resilient leader in the technology sector, even amidst economic uncertainties. The strong AWS performance underscores the growing demand for cloud infrastructure, particularly for artificial intelligence applications, while advertising growth reflects Amazon’s increasing appeal to marketers. The company’s strategic investments in satellite broadband and AI infrastructure signal its long-term vision to expand access and efficiency, reinforcing its role in shaping digital and physical marketplaces. As Amazon prepares for its second quarter, its balanced guidance and operational strength suggest continued momentum in delivering value to customers and shareholders alike.
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