Amazon’s Q1 Earnings Report Exceeds Expectations, Shares Jump Over 7 Percent

Shares in Amazon leapt on Thursday after the web retail colossus reported it made much more cash than anticipated within the first quarter of 2023.

Amazon reported a revenue of $3.2 billion on gross sales that climbed 9 p.c to $127.4 billion within the quarter.

The web revenue was a couple of billion {dollars} greater than analysts had forecast, and Amazon shares have been up greater than 7 p.c to $117.87 in after-market trades that adopted launch of the earnings figures.

“There’s so much to love about how our groups are delivering for purchasers, significantly amidst an unsure financial system,” said Amazon chief executive said Andy Jassy.

“Our Stores business is continuing to improve the cost to serve in our fulfillment network while increasing the speed with which we get products into the hands of customers.”

Jassy in March laid out a plan to chop 9,000 extra jobs from the web retail big’s workforce, following the 18,000 that have been axed in January.

“Given the unsure financial system… and the uncertainty that exists within the close to future, now we have chosen to be extra streamlined in our prices and headcount,” Jassy said in a memo at the time.

The layoffs account for a smaller percentage of Amazon’s total workforce, which ran up to 1.5 million people in December 2022, than the cuts seen at some other tech giants.

Amazon’s Jassy told his workers that the extra layoffs were necessary as the company seeks a way to downsize after years of sustained hiring.

This was largely caused by the coronavirus pandemic when users in Amazon’s major markets turned to the internet for shopping and entertainment, in a massive boost to the Seattle-based company.

The layoffs are part of the giant’s cost-cutting campaign that also saw a pause in plans to open a new company headquarters in the Washington, DC area, though the company said this was only a temporary measure.

Amazon’s AWS cloud computing unit saw revenue climb 16 percent to $21.4 billion, but costs ate into operating income, which tallied $5.1 billion as compared to $6.5 billion in the same quarter a year earlier, according to the earnings report.

“Amazon’s stronger-than-expected performance for its key profit centers of AWS and advertising indicate that the enterprise and the digital ad sectors may be turning the corner,” stated Insider Intelligence principal analyst Andrew Lipsman.

“For the primary time in a number of quarters, Amazon might lastly have a little bit of wind at its again,” he added.

“While our AWS business navigates companies spending more cautiously in this macro environment, we continue to prioritize building long-term customer relationships,” Jassy stated.

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