Key Takeaways
Amazon's cloud computing division, Amazon Web Services (AWS), saw a 17% increase in revenue to $25 billion, exceeding analyst expectations.
This growth was driven by increased interest in artificial intelligence (AI), with CEO Andy Jassy highlighting the "big opportunity" in servicing AI customers.
Amazon is investing heavily in its AI offerings, including the "Q" chatbot for businesses and the Rufus service for product discovery.
Overall, Amazon reported first-quarter revenue of $143.3 billion, surpassing analyst estimates of $142.5 billion.
Net income more than tripled to $10.4 billion, exceeding the average analyst estimate of $83 cents per share.
Amazon's advertising business continued its strong performance, with ad sales increasing 24% to $11.8 billion.
The company recently added unskippable ads to its Prime Video streaming service, which has been well-received by marketers.
Amazon plans to increase capital spending throughout the year, with a focus on supporting AWS infrastructure and generative AI efforts.
This investment is aimed at meeting growing customer demand for AI solutions and longer-term contracts.
While Amazon's first-quarter results were strong, its current-quarter revenue forecast of $144 billion to $149 billion fell below analyst expectations of $150.07 billion.
This suggests that the company may face some challenges in maintaining its growth momentum in the coming months.
Unlike some of its Big Tech peers, Amazon did not announce a dividend payout.
This decision may disappoint some investors, but it reflects the company's focus on reinvesting its profits into growth initiatives.
Overall, Amazon's first-quarter earnings report was positive, with strong growth in its cloud and advertising businesses. However, the company's lower-than-expected revenue forecast for the current quarter suggests that it may face some headwinds in the coming months.