AMZN: Amazon Stock Zig Zags After Profits Triple to $15B, CEO Andy Jassy Bets on AI

Cloud-computing unit is looking to slurp up AI capabilities to boost growth and reel out of a recent slump.

• Amazon stock AMZN seesawed in off-hours trading, erasing a 6% jump ahead of Wednesday’s open as investors digested the latest updates. The company’s first-quarter earnings report showed AI is front-and-center as artificial-intelligence tools have powered the cloud-computing unit Amazon Web Services (AWS). The business posted 17% sales growth for the March quarter to $25 billion.
• Overall revenue came in at a whopping $143.3 billion, up 13% from a year ago and ahead of estimates of $142.6 billion. Operating income tripled and blew past the $8 billion consensus, hitting $15.3 billion with earnings per share landing at 98 cents, above forecasts of 84 cents. Online stores sales brought in $54.7 billion, up 7% from a year ago and in line with expectations. Subscription sales picked up $10.7 billion, a hair below the $10.8 billion forecast.
• Amazon CEO Andy Jassy praised the results and said that AI capabilities are accelerating the growth in AWS after the cloud business suffered a postpandemic slowdown. AWS is “now at a $100bn annual revenue run rate”, said the tech giant’s boss. Drifting away from tech peers Alphabet GOOGL and Meta META, both of which announced dividends this year, Amazon was tight-lipped on the hot topic, probably causing a drag on shares.