🔗 Amazon's Strong Q1 Performance
Amazon's profits soared in the first quarter of 2024, with revenue reaching $143.3B, up 13% from 2023. The company surpassed Wall Street expectations of $142.65B, attributed to growth in AI and advertising sales. Net income tripled to $10.4B, compared to $3.17B in 2023.
🤖 AWS's AI Boost
CEO Andy Jassy highlighted Amazon's focus on AI, which "reaccelerat[ed]" growth in Amazon Web Services (AWS). AWS revenue increased 17% year-over-year to $25B, and accounted for 62% of total operating profit. Jassy sees room for further growth in the generative AI sector.
📈 Advertising Revenue Increases
Advertising sales grew 24% year-over-year to $11.8B, helped by Amazon's expansion in advertising, including ads on Prime Video. Amazon's capex was $14B for the quarter, expected to rise with AWS and AI expansion. Jassy emphasized prudent capital spending aligned with demand.
🌐 Amazon's Growth Plans
Amazon plans to invest $11B in new data centers in Indiana, creating at least 1,000 jobs. The company also extended its partnership with Nvidia for AI. Investors responded positively to recent cost-cutting, including layoffs of over 27,000 employees since late 2022. Shares rose 5% in after-hours trading.
Is AI the key to Amazon's continued success?
