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Amazon results beat estimates; revenue forecast misses

Apr 30, 2024 - uk.fashionnetwork.com
Amazon.com's Q1 results exceeded Wall Street's expectations, driven by interest in artificial intelligence and cloud-computing growth. The company's shares rose nearly 3% in extended trade, despite a lower-than-expected revenue forecast for the current quarter. First-quarter sales increased 13% to $143.3 billion, and net income more than tripled to $10.4 billion. Amazon Web Services (AWS) saw a 17% rise in revenue to $25.0 billion, outperforming expectations.

However, the company's forecast for the current quarter ending in June is between $144.0 billion and $149.0 billion, lower than the consensus expectation of $150.07 billion. Despite cutting at least 27,000 jobs last year, Amazon ended the quarter with 1.52 million employees, up by 56,000 from a year earlier. Unlike its rivals Alphabet and Meta Platforms, Amazon did not announce a dividend. Its shares have climbed about 15% in 2024, outperforming the S&P 500's gain of about 6%.

Key takeaways:

  • Amazon's Q1 sales increased 13% to $143.3 billion, beating expectations, and net income more than tripled to $10.4 billion.
  • Despite a lower-than-expected revenue forecast for the current quarter, Amazon's shares climbed almost 3% in extended trade.
  • Amazon Web Services posted a 17% rise in revenue to $25.0 billion in the first quarter, with CEO Andy Jassy stating that AWS is on pace to achieve $100 billion in annual sales.
  • Amazon remains one of the only major tech stocks, along with Tesla, that does not offer dividends, despite a recent trend among other Big Tech companies.
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