The company began trimming its spending last year by canceling some of its warehouse expansion plans and reducing headcount in its facilities through attrition. The company said Thursday the segment grew 16% during the first quarter, which beat analyst expectations but had a much slower showing than a 37% growth rate a year prior.Īmazon too has been cutting its expenses amid sluggish online sales and concerns over whether the U.S. But it grew at a slower pace compared to the same period last year.Īmazon CEO Andy Jassy wrote in his annual shareholder’s letter released earlier this month that AWS, the leader in the cloud market, was facing short-term headwinds as companies are becoming more cautious in their spending amid more uncertainty in the economy. Google reported its cloud business grew by a strong 28%, leading to its first operating profit. Microsoft posted a spike in profits on Tuesday driven by a strong showing in its cloud segment Azure, which recently saw some slowdowns in growth. On Wednesday, Facebook parent Meta beat profit and revenue expectations, leading to a bounce in its stocks in after-hours trading. The report on Thursday rounds out a busy earnings week for major tech companies. It’s also a strong improvement from the same period last year, when the e-commerce giant reported its first quarterly loss in years mainly driven by a loss in value of its investment in the electric vehicle company Rivian Automotive.Īmazon’s stock rose 9% in after-hours trading.
Profits came out to $3.2 billion, or 31 cents per share, higher than the $2.24 billion industry analysts had expected.
Analysts surveyed by FactSet had expected $124.6 billion.
The Seattle-based company said it pulled in $127.4 billion in revenue for the January-March quarter, a 9% growth compared to the $116.4 billion it reported during the same period last year.
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