Amazon reported strong results in the first quarter of 2024, with revenue of US$ 143,31 billion, a 13% increase compared to the same period of the previous year. The net profit reached US$ 10,43 billion, or US$ 0,98 per share, significantly exceeding Wall Street analysts' expectations, that anticipated US$ 0,84 per share
It was a good start to the year in all sectors of the business, and this can be seen both in the improvements in customer experience and in financial results, stated Andy Jassy, CEO of Amazon, in a statement
The giant of e-commerce, based in Seattle, comes from results above expectations during the Christmas shopping period, when observed strong spending by consumers, aided by discounts and faster delivery times. The company held another promotional event at the end of March, shortly before the end of the first quarter
According to Brian Olsavsky, financial director of Amazon, American consumers are being "very cautious" with their spending, looking for promotions and opting for more economical products. He highlighted that the company is observing, "particularly", a reduction in spending in Europe
AWS in acceleration
The cloud computing division of the company, Amazon Web Services (AWS), recorded sales of US$ 25,4 billion in the first quarter, a growth of 17% compared to the same period of the previous year. The AWS, whose clients are mainly companies, has been the cornerstone of Amazon's strategy in the competitive race for artificial intelligence among the major technology companies
Jassy stated that AI resources have re-accelerated AWS's growth rate, that is now on track to reach US$ 100 billion in annual revenue. Hours before the announcement of the results, Amazon announced the full launch of a business chatbot called Q, that promises to help employees be more productive at work
Advertising on the rise, including Prime Video
Sales in the company's online advertising business saw a jump of 24%, driven mainly by sponsored product ads. Olsavsky highlighted that Amazon, that started displaying ads on Prime Video at the end of January, currently there is a "light" number of ads on the streaming service compared to TV or other providers
"The ads are doing well and attracting several new advertisers who were not using Amazon's advertising services", the financial director stated, referring to the Prime Video initiative, that allows customers to avoid ads for an additional monthly fee of $2,99
Amazon's shares rose about 2% in after-hours trading, reflection of investor confidence in the results presented
For the second quarter, Amazon expects to report net sales between $144 billion and $149 billion, while analysts estimate US$ 150,2 billion
