Amazon: Net income tripled to $10.4 billion, driven by advertising and cloud computing
Amazon achieved record revenue and profitability levels due to growth in advertising and the cloud segment, as well as optimization of operating expenses in the first quarter of 2024.
Record boom
Financials
The e-commerce giant showed impressive financial results for the first quarter of the current year. The company's operating income more than tripled to $15.3 billion, while net income surpassed $10 billion, a three-fold increase compared to the same period last year. The digital advertising and cloud computing divisions were the source of such rapid growth.
Growth drivers
The main drivers of Amazon’s financial growth in the reporting period were cost optimization, improvement logistics operations and increasing the efficiency of cloud infrastructure. The company continued to cut its workforce, laying off more than 27,000 people from the end of 2022. At the same time, there was an increase in revenue from third-party sellers and the advertising segment by 16% and 24%, respectively, year-on-year.
Forecasts for future development
Amazon predicts further growth in profitability in the next quarter, although more at a moderate pace. Operating income is expected to be between $10 billion and $14 billion, and revenue will grow by 7%-11% to the range of $144-$149 billion. The company's management is optimistic about future prospects thanks to the dynamic development of key business areas and constant cost optimization.
Glossary
- Amazon is one of the world's largest technology companies, specializing in e-commerce, cloud computing, digital streaming, and artificial intelligence .
- AWS (Amazon Web Services) is a cloud platform that provides scalable and flexible cloud services for businesses and individual users.
- CNBC is the leading American television network for business and financial news.
- LSEG (London Stock Exchange Group) is a British exchange group that includes the London Stock Exchange and other financial organizations.
Link
Answers to questions
How did Amazon's financial performance increase in the first quarter?
What are the main areas of activity that led to Amazon's growth?
How does Amazon plan to support growth going forward?
What measures does Amazon take to optimize costs?
How have Amazon's retail sales figures changed?
Hashtags
Save a link to this article
Discussion of the topic – Amazon: Net income tripled to $10.4 billion, driven by advertising and cloud computing
Amazon reported first-quarter earnings and revenue that beat expectations. The company's net income more than tripled to $10.4 billion thanks to advertising and cloud computing.
Latest comments
8 comments
Write a comment
Your email address will not be published. Required fields are checked *
Nelly_Perez
Wow, Amazon's incredible Q1 growth numbers! 🚀 Their strategy of optimizing costs and focusing on key areas such as advertising and cloud services seems to have really worked. Net income of $10.4 billion sounds simply impressive! 🤑
Otto_Muller
Not surprisingly, AWS has become a major source of revenue for Amazon. The company has long made a bet on cloud computing, and it turned out to be a far-sighted move. However, I was most impressed by the rapid growth of advertising - a 24% increase in revenue for the quarter! 📈 Amazon successfully competes with digital marketing giants.
Francois_LeBlanc
Of course, the reduction of 27,000 employees also played a role in reducing costs. While I do not approve of such drastic measures, one cannot help but recognize their impact on the company's bottom line. However, this is also a risky strategy in the long run. 🧐
Grigoriy_Grumpynov
Of course, everyone is fascinated by these numbers and temporary growth! 😒 But have you thought about the impact of such a corporation on society and the environment? The constant pursuit of profits, the exploitation of workers, the growth of consumer demand - this does not bring anything good. Instead of praising Amazon, it is better to think about alternatives and sustainable development.
Isabella_Rossi
I understand your doubts, Grigory, but let's not forget that Amazon is not only about trade and delivery. Their cloud-based services and developer tools greatly simplify the work of many companies around the world. AWS, for example, allows you to optimize the use of resources and reduce emissions. 🌱 Of course, there is a lot to work on, but progress is also impossible without innovation.
Luka_Nowak
Yes, I agree that Amazon is a huge corporation with all its inherent problems. But I hope that they will direct part of their profits to the development of environmental initiatives and community support. After all, this is the only way to achieve sustainable growth. 💚 And so far, their innovations help businesses and consumers.
Sofia_Melik
Personally, I am most interested in Amazon's potential in artificial intelligence and machine learning. 🤖 With such resources and technological capabilities, they can become a leading force in this field. It will be interesting to see how Amazon develops its AI-powered tools for businesses and everyday users.
Nelly_Perez
Yes, Sofia, you are right! The field of AI is the next step for Amazon. 🚀 With their cloud capabilities and analytical tools, they can offer unique solutions for process automation, data analysis and intelligent application development. It will be very interesting to watch their progress in this direction! 🔍