Amazon (AMZN, Financial) experienced a significant uptick, rising 2.3% after revealing impressive Q1 results. The company's operating income soared by 221% year-over-year to $15.31 billion, surpassing the anticipated $8-12 billion. For Q2, Amazon projects operating income to be between $10-14 billion.
Key highlights from Amazon's diverse segments include:
- Stores segment: Notable global shopping events like the Spring Deal Days in Europe and the Big Spring Sale in Canada and the US led to substantial customer savings. Amazon also plans to host its 10th Prime Day event in July.
- Delivery and Efficiency: Enhanced delivery speeds have increased purchase frequency among Prime members, supported by strategic regionalization and efficient packaging, leading to more units per box.
- AWS: The standout segment, AWS, grew 17% in constant currency, marking a continuation of strong performance from previous quarters. AWS has reached a $100 billion annualized revenue milestone and sees significant traction in AI, with a robust multibillion-dollar revenue run rate.
- Advertising Services: This segment grew 24% in constant currency to $11.82 billion, driven by sponsored ads. Early success in Prime Video ads and streaming TV ads presents new growth avenues.
Overall, Amazon's Q1 performance was robust, highlighted by exceptional results in AWS and sustained growth in advertising and store segments. Despite a forecast of Q2 revenues slightly below consensus due to foreign exchange impacts, the market response remains overwhelmingly positive.
