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Amazon Stock Zigzags After Profits Triple to $15 Billion, CEO Andy Jassy Bets on AI – TradingView News

Most important points:

  • Shares swing open ahead.
  • Profits triple to more than $15 billion.
  • Amazon remains tight-lipped about dividends.

BoliviaInteligente / Unsplash

Cloud computing unit wants to soak up AI capabilities to boost growth and emerge from a recent slump.

  • Amazon shares AMZN fluctuated in after-hours trading, erasing a 6% jump before Wednesday’s open as investors digested the latest updates. The company’s first-quarter earnings report showed that AI is at the forefront as artificial intelligence tools have powered cloud computing Amazon Web Services (AWS). The company posted 17% revenue growth to $25 billion in the March quarter.
  • The total proceeds amounted to as much as $143.3 billion, up 13% from a year ago and higher than estimates of $142.6 billion. Operating income tripled, surpassing the $8 billion consensus to reach $15.3 billion, while earnings per share came in at 98 cents, above forecasts of 84 cents. Online store sales brought in $54.7 billion, up 7% from a year ago and in line with expectations. Subscription sales rose $10.7 billion, a hair shy of the $10.8 billion forecast.
  • Amazon CEO Andy Jassy praised the results, saying AI capabilities are accelerating AWS’s growth after its cloud business experienced a post-pandemic slowdown. AWS “now has annual revenues of $100 billion,” according to the tech giant’s boss. Drifting away from tech colleagues Alphabet GOOGL and Meta METAboth of which announced dividends this year, Amazon remained tight-lipped on the hot topic, likely putting a damper on the stock.