The company’s net sales totaled US$143.3 billion during Q1 2024, a 13 percent increase compared to Q1 2023. Sales in the North America segment accounted for the largest portion at US$86.3 billion, up 12 percent year-over-year.
However, the segment that experienced the highest growth was Amazon Web Services (AWS), which saw a 17 percent increase to US$25 billion.
This trend could continue as businesses prioritize digital transformation and seek to leverage AI for competitive advantage.
Operating income also saw significant growth, increasing to US$15.3 billion compared to Q1 2023’s US$4.8 billion. AWS took the lead, bringing in an operating income of US$9.4 billion, up 84 percent year-over-year from US$5.1 billion. This impressive performance highlights the strategic importance of AWS to Amazon’s overall business strategy and its capacity to drive profitability.
Looking ahead, Amazon anticipates net sales of between US$144 billion to US$149 billion in Q2, which would represent growth of 7 to 11 percent year-over-year, and operating income of between US$10 and US$14 billion. Although this outlook falls slightly short of current average analyst expectations of US$150.1 billion in net sales for the next quarter, it reflects Amazon’s confidence in its ability to maintain a strong financial performance.
The market reacted positively to the report, with Amazon’s share price jumping from a close of US$175 to US$186 in after-hours trading, just minutes after the findings were released. After a brief period of volatility, Amazon’s share price had stabilized below US$180 as of 6:00 pm EDT.
Overall, Amazon’s Q1 2024 results demonstrate the company’s resilience and ability to drive growth, even in a challenging economic environment.
Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.
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