Amazon knocked it out of the park in the first quarter, showing robust growth in both earnings and revenue that surpassed Wall Street’s expectations. The company’s performance was driven by stellar results in advertising and cloud computing, pushing its stock higher in extended trading.

Here’s a breakdown of their impressive numbers:

– Earnings per share: Amazon posted 98 cents per share, beating the 83 cents expected by analysts.
– Revenue: Clocking in at $143.3 billion, exceeding the projected $142.5 billion.

Key Highlights:

– Amazon Web Services (AWS): The cloud computing giant brought in $25 billion in revenue, surpassing expectations of $24.5 billion.
– Advertising: Amazon’s advertising arm saw a surge in revenue to $11.8 billion, slightly edging out predictions.

Operating income skyrocketed by over 200% to $15.3 billion, showcasing Amazon’s focus on efficiency and cost-cutting strategies. AWS remained a powerhouse, contributing 62% to the total operating profit. Net income also more than tripled, hitting $10.4 billion.

Looking ahead, Amazon anticipates continued profitability in the second quarter, albeit at a slightly slower pace. Operating income is projected to be between $10 billion to $14 billion, with revenue expected to range from $144 billion to $149 billion, representing a growth rate of 7% to 11%.

The impressive growth in AWS is particularly noteworthy, with a 17% increase in sales, outpacing market forecasts. Amazon attributes this growth to the stabilization of cloud spending and increasing demand for generative artificial intelligence.

CEO Andy Jassy’s disciplined approach to spending has been instrumental in driving earnings growth. Despite workforce reductions, particularly in its health and AWS divisions, Amazon’s advertising business surged by 24%, becoming a significant revenue generator.

The company’s decision not to implement a quarterly dividend, despite its growing cash reserves, sets it apart from other tech giants like Meta and Alphabet. While both announced dividends and stock buyback plans, Amazon’s strategy remains focused on expanding profitable services and maintaining its competitive edge in online advertising and cloud computing.