Amazon's First Quarter Earnings Report
Amazon reported better-than-expected earnings and revenue for the first quarter, driven by growth in advertising and cloud computing. The company's operating income soared over 200% and net income more than tripled compared to the previous year. AWS accounted for 62% of total operating profit.
Key Points
- Amazon's cost-cutting measures and focus on efficiency are bolstering its bottom line
- CEO Andy Jassy's disciplined spending approach is contributing to earnings growth
- Amazon's advertising unit saw a 24% sales surge
- Third-party seller services revenue continued to surge, growing by 16%
Pros
- Operating income soared over 200%
- Net income more than tripled compared to the previous year
- AWS accounted for 62% of total operating profit
Cons
- Layoffs of over 27,000 employees since late 2022
- Cost optimizations tapering off in AWS