Amazon.com Inc’s first-quarter earnings beat estimates on Thursday, boosting the company’s share price by about 9% in extended trading, fueled by resilient demand for its online shopping and cloud services business.
The world’s largest online retailer reports higher-than-expected net sales of $127.36 billion in the first three months of the year, with projected second-quarter sales between $127 billion and $133 billion. bottom.
Analysts had expected sales of $129.83 billion for the quarter ending June 30.
Growth in Amazon Web Services, long a key profit driver, slowed to 15.8% in the first quarter, prompting businesses to slow spending on fears of a recession.
Net income for the quarter ended March 31 was $3.17 billion, compared with a loss of $3.84 billion in the year-ago quarter.
To address ongoing concerns about the economy, CEO Andy Jassy is looking to curb spending across Amazon’s vast number of businesses.
He last month cut further headcount from Amazon’s long-profitable cloud and advertising divisions, cutting the company’s layoffs since November to 27,000 employees, or 9% of its roughly 300,000 strong corporate staff. said it would expand to
Amazon similarly pulled its Halo health tracker lineup and shut down the entire service, including Wednesday, when it announced it would refund recent purchases.
At the same time, it seeks new revenue streams in the face of inflation hurting retail demand in Europe, among other challenges.
After signing a deal to acquire provider One Medical in February, it will not only offer higher grocery delivery rates for US Prime loyalty members, but will also offer add-on generic drug subscriptions and discounted memberships to primary care services. I made a sale.
(Reporting by Akash Sriram, Bangalore and Jeffrey Dastin, Palo Alto, CA; Editing by Arun Koyyur)
