E-commerce and cloud giant Amazon reported a top and bottom line beat for the first-quarter on Thursday after the close. Shares were rising 0.3% to $1,907.00 after-hours.
- EPS: $7.09 vs. $4.72, according to analysts surveyed by Refinitiv
- Revenue: $59.7 billion vs. $59.7 billion, according to Refinitiv
- AWS: $7.7 billion vs. $7.7 billion, according to analysts surveyed by FactSet
Amazon Web Services (AWS) continued to be the star of the show, growing 41% in sales to $7.7 billion, about 13% of Amazon’s total revenue for the quarter. AWS is the cloud computing market leader, ahead of Google Cloud and Microsoft Azure.
Amazon’s other category business, which mostly comprises advertising business, jumped 34% to $2.7 billion in revenue.
Subscription services were up 40% to $4.3 billion. That would mainly constitute Amazon Prime, which the company is expanding to offer deals at places like Whole Foods.
Wall Street holds high hopes for Amazon’s retail and cloud business. Marco data offers reasons to be optimistic. Analysts at Moody’s say strong economic fundamentals, with lower unemployment and wage growth could fuel higher consumer spending this year.
International market loss narrows
Amazon is trying to grow Prime users across the globe. The first-quarter earnings have sent some positive signals. Amazon lost $90 million in the international market this quarter, improving from the $622 million it lost one year ago.
Competition with local players and regulatory changes remain add uncertainties to its international expansion.
Amazon stock was up 1.6% after-hours on the earnings. Its shares have risen by 28.7% year-to-date.