Amazon’s Q1 Profits Triple As Cloud, Ads And Retail Segments Soar
Amazon CEO Andy Jassy attributed this strong performance to broad-based growth across the company’s key business areas
Ecommerce giant Amazon has seen a stellar start in 2024, tripling its profits in the first quarter as its cloud computing, advertising and retail operations flourished. In the earnings release on Tuesday, Amazon reported a profit of USD 10.4 billion on USD 143.3 billion in revenue, an increase from USD 3.2 billion in profits on USD 127.4 billion in sales during the same period last year.
Amazon CEO Andy Jassy attributed this strong performance to broad-based growth across the company’s key business areas. Particularly notable was the performance of Amazon Web Services (AWS), which saw revenues rise to USD 25 billion from USD 21.4 billion in the previous year, driven largely by companies updating their infrastructure to utilise AI technologies.
The online retail segment also showed robust health, with sales growing 7 per cent despite intense competition from rivals like Shein and Temu.
Amazon’s growing advertising business also experienced decent growth, with ad sales reaching USD 11.8 billion, a 24 per cent increase from last year. This surge in ad revenue is tied to Amazon’s online shop and its Prime streaming television service, which continue to draw substantial consumer and corporate attention.
Despite the economic triumphs, the company is also focused on efficiency, having reduced its workforce by 27,000 in the previous year to cut costs. Amazon is preparing for further investments, particularly in the AI sector and AWS infrastructure, with plans to significantly expand its data centers in Mexico, Saudi Arabia and the United States.
Amazon’s financial successes and aggressive investment in technology and infrastructure development come as the tech giant faces increased scrutiny and regulatory challenges, including a major antitrust lawsuit in the US. However, with shares rising nearly 75 per cent over the past 12 months, investor confidence appears strong, reflecting optimism in Amazon’s strategic direction and its ability to navigate both market and regulatory pressures.
