Amazon’s strong cloud sales help power revenue gains

Ecommerce company’s shares make modest gains after earnings report

Amazon’s operating income for the first three months of the year was $15.3 billion, beating forecasts for $11 billion. Photograph: Chris Ratcliffe/Bloomberg
Amazon’s operating income for the first three months of the year was $15.3 billion, beating forecasts for $11 billion. Photograph: Chris Ratcliffe/Bloomberg

Strong sales at Amazon’s cloud computing division helped the Big Tech giant beat analyst estimates for revenue and profit in an earnings report on Tuesday.

Sales at Amazon Web Services, a critical profit driver for the ecommerce giant, rose 17 per cent to $25 billion (€23.4 billion), ahead of forecasts for $24.5 billion. Overall net sales were $143.3 billion, up 13 per cent from the year before and above forecasts for $142.5 billion.

Amazon’s operating income for the first three months of the year was $15.3 billion, beating forecasts for $11 billion.

However, guidance for total second-quarter net sales came in below expectations, with Amazon predicting between $144 billion-$149 billion compared with analyst forecasts of $150 billion.

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Shares in Amazon, which have risen by about 17 per cent this year, rose nearly 3 per cent in after-hours trading. --Copyright The Financial Times Limited 2024