Business

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

Tue Apr 30 2024 - 21:32

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

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