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Amazon on Thursday reported a continuing slowdown in its cloud computing unit AWS but stronger than expected revenue and profits for the first quarter sent its stocks higher in after-hours trading.
The Seattle-based company said it pulled in $127.4 billion in revenue for the January-March quarter, a 9% growth compared to the $116.4 billion it reported during the same period last year. Analysts surveyed by FactSet had expected $124.6 billion.
Profits came out to $3.2 billion, or 31 cents per share, higher than the $2.24 billion industry analysts had expected. It’s also a strong improvement from the same period last year, when the e-commerce giant reported its first quarterly loss in years mainly driven by a loss in value of its investment in the electric vehicle company Rivian Automotive.
Amazon’s stock rose 9% in after-hours trading.
The report on Thursday rounds out a busy earnings week for major tech companies. On Wednesday, Facebook parent Meta beat profit and revenue expectations, leading to a bounce in its stocks in after-hours trading. Microsoft posted a spike in profits on Tuesday driven by a strong showing in its cloud segment Azure, which recently saw some slowdowns in growth. Google reported its cloud business grew by a strong 28%, leading to its first operating profit.
