Amazon lifts on quarterly revenue jump
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The news: Amazon shares rose after the retail and tech giant’s quarterly revenue and net income beat expectations.
The numbers: The world's biggest cloud provider and online retailer said first-quarter sales increased 13% to USD143.3 billion ($221.3 billion), higher than the USD142.5 billion consensus.
Net income more than tripled to USD10.4 billion, or 98 US cents per diluted share, compared with analysts' average EPS estimate of 83 US cents.
Amazon shares rose as much as 6% in after-hours trading.
The context: Amazon Web Services (AWS), the largest provider of cloud-computing services, posted a 17% rise in revenue to USD25 billion in the first quarter, compared with expectations of USD24.53 billion.
Amazon is racing to keep abreast of rivals in offering generative artificial-intelligence software. Competitors include Alphabet as well as Microsoft-backed OpenAI.
However, the company expects tepid spending from cost-conscious businesses on its cloud-computing services. It expects revenue of USD144 billion to USD149 billion for the current quarter ending June, compared with analyst consensus expectations of USD150.07 billion.
