Subscribe

Subscribe to Our Newsletter

Success! Now Check Your Email

To complete Subscribe, click the confirmation link in your inbox. If it doesn’t arrive within 3 minutes, check your spam folder.

Ok, Thanks
Business Tech

Amazon stock rises as latest profits beat expectations

The Curator profile image
by The Curator
Updated
Amazon stock rises as latest profits beat expectations

Amazon shares traded higher after Tuesday's stock market close after the e-commerce giant reported first-quarter earnings that surpassed Wall Street forecasts.

The company's revenues for the quarter stood at $143.3 billion, up from $127.4 billion this time last year.

It was driven by its cloud computing business Amazon Web Services (AWS) which, boosted by demand for AI services, increased revenues by 17% to $25 billion.

Amazon also put the spotlight on its $4 billion investment in Anthropic, an AI company developing a rival to OpenAI's ChatGPT.

The company reported net income if $10.3 billion for the quarter, up massively from the $3.2 billion achieved for the same period in 2023.

Nevertheless, Amazon stayed cautious as it looked to the next quarter's results - as its next revenue forecast between $144 billion and $149 billion for its second quarter, which was slightly below the analyst estimates $150.07 billion.

The company's stock reacted positively, climbing as much as 6% in after-hours trading following the announcement, at one point reaching $186 per share.

Explore Bias

The initial financial reporting across various outlets emphasize the success of Amazon's AWS, rather than spotlighting the more cautious outlook for the next quarter.

Many reports come immediately after the results announcement and may not fully capture the finer details and analysis, or address some of the challenges Amazon faces. Further reporting in the coming days will likely provide more considered insight.

The Curator profile image
by The Curator
Updated

Read More