- 29 Eki 2018
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As revenue from its cloud computing and advertising operations exceeded expectations for the first quarter of the year, Amazon's shares increased by more than 11%.
The e-commerce behemoth recorded revenue for the quarter of $127.4 billion, up 9% from the $116.4 billion it reported during the same period last year. The company is actively cutting expenses, notably by firing 27,000 employees.
The Seattle-based corporation posted profits of $3.17 billion, or 31 cents per share, which was greater than the $2.24 billion that market analysts had predicted.
Amazon revealed that its AWS cloud segment grew by 16% during the first quarter, far slower than the 37% the company reported a year earlier, despite exceeding expectations and having pioneered the sector more than 15 years ago.
Overall, Amazon's performance is far better than it was a year ago, and it came after Microsoft and Meta, a firm owned by Facebook, both reported encouraging financial results. After virtually halving in value in 2022, Amazon shares are up 31% for the year as of Thursday's results.
There is a lot to appreciate about how our employees are delivering for customers, particularly in light of the uncertain economic climate, according to a statement from Amazon's CEO, Andy Jassy.
Overall, Amazon's performance is far better than it was a year ago, and it came after Microsoft and Meta, a firm owned by Facebook, both reported encouraging financial results. After virtually halving in value in 2022, Amazon shares are up 31% for the year as of Thursday's results.
There is a lot to appreciate about how our employees are delivering for customers, particularly in light of the uncertain economic climate, according to a statement from Amazon's CEO, Andy Jassy.
The company's advances in machine learning have boosted Amazon's advertising division, which saw revenues increase 23% year over year to $9.51 billion, according to Jassy. He continued by saying that despite business customers becoming "more cautious" with their cloud service purchases, Amazon's storage and machine learning services would still see "much growth ahead."
The business issued a warning earlier this month that customers are becoming more cost-conscious and looking for opportunities to cut expenditures. A lot of consumers have also switched back to in-store shopping after relying on online shopping during the pandemic. The company thus recorded no expansion in its online retail operation.
In response to the post-pandemic atmosphere, Amazon has already canceled certain warehouse expansion plans. Over the previous two quarters, cost-cutting tactics have been more prevalent, and 27,000 corporate employees have been laid off—the most job losses in the company's 29-year history—in roles related to devices, advertising, AWS, and live-streaming.
The company also intends to put a stop to the expansion of its grocery business, shutter some of its Amazon Fresh and Go convenience stores, and halt work on the second phase of its headquarters in northern Virginia.
However, the business has also stated that it intends to diversify into other industries, such as healthcare, artificial intelligence (AI), and Kuiper, a satellite broadband project that the business presented in 2020.
