Amazon stocks surge after Q1 revenue, profit wins

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Amazon on Thursday reported a continuing slowdown in its cloud computing unit AWS, but stronger-than-expected revenue and profits for the first quarter sent its stocks higher in after-hours trading.

The Seattle-based company said it pulled in US$127.4 billion in revenue for the January-March quarter, a 9% growth compared to the US$116.4 billion it reported during the same period last year. Analysts surveyed by FactSet had expected US$124.6 billion.

"Amazon did what it needed to do in Q1 by reversing--or at least stalling--its most troublesome declining growth trends," Insider Intelligence principal analyst Andrew Lipsman said in a statement. During a call with reporters on Thursday, Amazon Chief Financial Officer Brian Olsavsky said consumers continue to be cautious with their spending amid high inflation and are looking to stretch their budgets further by purchasing lower-priced items.

Amazon accelerated cost-saving measures over the past couple of quarters by cutting 27,000 corporate roles in different units, including devices, advertising, AWS and Twitch, the popular live streaming platform it acquired in 2014. It has also axed several businesses that weren't bringing in enough cash, such as its healthcare startup Amazon Care, subsidiary fabric.com and the video calling device Amazon Glow.

 

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Amazon stocks surge on Q1 revenue, profitAmazon.com Inc.\u0027s stock rose 9% in after\u002Dhours trading, despite a continuing slowdown in its cloud computing unit AWS. Find out more.
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