Amazon on Thursday reported a continuing slowdown in its cloud computing unit AWS, but stronger-than-expected revenue and profits for the first quarter sent its stocks higher in after-hours trading.
The Seattle-based company said it pulled in US$127.4 billion in revenue for the January-March quarter, a 9% growth compared to the US$116.4 billion it reported during the same period last year. Analysts surveyed by FactSet had expected US$124.6 billion.
Profits came out to US$3.2 billion, or 31 cents per share, higher than the US$2.24 billion industry analysts had expected. It's also a strong improvement from the same period last year, when the e-commerce giant reported its first quarterly loss in years mainly driven by a loss in value of its investment in the electric vehicle company Rivian Automotive.
Amazon's stock rose 3% in after-hours trading.
The report on Thursday rounds out a busy earnings week for major tech companies. On Wednesday, Facebook parent Meta beat profit and revenue expectations, leading to a bounce in its stocks in after-hours trading. Microsoft posted a spike in profits on Tuesday driven by a strong showing in its cloud segment Azure, which recently saw some slowdowns in growth. Google reported its cloud business grew by a strong 28%, leading to its first operating profit. But it grew at a slower pace compared to the same period last year.
Amazon CEO Andy Jassy wrote in his annual shareholder's letter released earlier this month that AWS, the leader in the cloud market, was facing short-term headwinds as companies become more cautious in their spending amid more uncertainty in the economy. The company said Thursday the segment grew 16% during the first quarter, which beat analyst expectations but had a much slower showing than a 37% growth rate a year prior.
"Amazon did what it needed to do in Q1 by reversing--or at least stalling--its most troublesome declining growth trends," Insider Intelligence principal analyst Andrew Lipsman said in a statement.
"For the first time in several quarters, Amazon may finally have a bit of wind at its back," he said.
Amazon reported no growth in the first quarter in its online retail business. It grew by 3% excluding foreign exchange rates, according to its calculations. Company executives have said shoppers have become more conscious about their spending and are trying to save costs when they can. On top of that, many shoppers have let go of their pandemic-fueled reliance on e-commerce, which led Amazon to report record revenue figures at the time.
During a call with reporters on Thursday, Amazon Chief Financial Officer Brian Olsavsky said consumers continue to be cautious with their spending amid high inflation and are looking to stretch their budgets further by purchasing lower-priced items.
But he said the company continues to see bright spots in its advertising business and in international sales helped by easing economic pressures in Europe, among other areas.
Amazon too has been cutting its expenses amid more overall sluggish online sales and concerns over whether the U.S. will dip into a recession. The company began trimming its spending last year by canceling some of its warehouse expansion plans and reducing headcount in its facilities through attrition. And its been moving its warehouses from a national to a regionalized network model as part of an effort to improve delivery speed and save costs.
Amazon accelerated cost-saving measures over the past couple of quarters by cutting 27,000 corporate roles in different units, including devices, advertising, AWS and Twitch, the popular live streaming platform it acquired in 2014. It has also axed several businesses that weren't bringing in enough cash, such as its healthcare startup Amazon Care, subsidiary fabric.com and the video calling device Amazon Glow. On Wednesday, the company said it would shut down its health-focused Halo devices and related membership service on August 1.
In February, the retailer said it would shut down some of its Amazon Fresh and Go convivence stores and pause expansions as it attempts to find the right formula for its grocery business. Amazon has also paused construction on the second phase of its headquarters in northern Virginia. It expects to bring thousands into the first phase of the development when it opens in June, and has asked for US$152.7 million in state incentives for bringing those jobs to Virginia.
Jassy has signaled confidence that the company can get its costs under control. He has also said Amazon will continue to expand its investments in a number of areas that are further from its core business, such as healthcare, generative AI and Kuiper, a satellite broadband project the company unveiled in 2020.
The company said Thursday it expects to post revenue between US$127.0 billion and US$133.0 billion during the second quarter, bracketing the average analyst estimate of US$129.87 billion.
Hurricane Milton is a Category 4 storm forecast to bring extreme flooding, high winds and heavy rain to the central west coast of Florida.
Foreign Affairs Minister M茅lanie Joly says Canadians in Florida should leave and people planning to travel there should postpone as the state braces for the impact of Hurricane Milton.
A Turkish Airlines jetliner headed from Seattle to Istanbul made an emergency landing in New York on Wednesday after the captain died on board, an airline official said.
Hundreds of thousands of vehicles are being recalled in Canada due to a steering-related issue that could increase a driver's risk of crash.
The leader of the Bloc Quebecois says his party 'might play a role' in helping the Liberals get House of Commons business rolling again 鈥 after days of Conservative-led debate on a privilege matter 鈥 but that his assistance would come at a cost.
A Claude Monet pastel painting stolen by Nazis during World War II, which vanished for decades only to show up with a Louisiana art dealer, was returned Wednesday in New Orleans to the descendants of its original owners.
Two Orange County women are speaking out after they say they were kicked off of a Spirit Airlines flight because of what they were wearing.
The Kremlin said on Wednesday that the administration of former U.S. president Donald Trump had sent COVID tests to Russia but it denied reports that Trump had spoken at all to Russian President Vladimir Putin since leaving office.
A B.C. woman who was recorded praising Hamas as 'heroic and brave' can return to protest rallies, authorities confirmed this week.
A B.C. woman who was recorded praising Hamas as 'heroic and brave' can return to protest rallies, authorities confirmed this week.
A 42-year-old Winnipeg man has been charged with human smuggling following an investigation near a Canada-U.S. border crossing in Manitoba.
Another beluga whale has died at Marineland and four years into a provincial probe, Ontario's solicitor general is saying little about the investigation's progress.
Liberal MP Yvan Baker says there should not have been different punishments doled out to him and to Conservative Leader Pierre Poilievre for comments each of them made in the House of Commons.
Foreign Affairs Minister M茅lanie Joly says Canadians in Florida should leave and people planning to travel there should postpone as the state braces for the impact of Hurricane Milton.
Erin Folk and her family are dealing with a nightmare of a situation, after their pet dogs were shot last week and left to suffer.
Steady rain fell and winds began to gust in the Tampa Bay area Wednesday morning as a mighty Hurricane Milton churned toward a potentially catastrophic collision with the west coast of Florida, where officials sounded urgent warnings for residents to flee inland or face grim odds of surviving the storm's surge.
The Kremlin said on Wednesday that the administration of former U.S. president Donald Trump had sent COVID tests to Russia but it denied reports that Trump had spoken at all to Russian President Vladimir Putin since leaving office.
Two Orange County women are speaking out after they say they were kicked off of a Spirit Airlines flight because of what they were wearing.
Since Joe Biden ended his reelection bid, Kamala Harris swiftly secured the U.S. Democratic presidential nomination, brought in hundreds of millions of dollars in new campaign donations and surged past Biden鈥檚 poll numbers from earlier this year. And yet, Democrats are increasingly anxious over Harris' fate. Why?
Five people were killed when a small plane crashed during takeoff from Santa Catalina Island off the Southern California coast, authorities said Wednesday.
Israel's defence minister warned on Wednesday that his country's retaliation for a recent Iranian missile attack will be 'lethal' and 'surprising,' while Israeli Prime Minister Benjamin Netanyahu and U.S. President Joe Biden held their first call in seven weeks.
Canada is adding another $15 million to its humanitarian aid package for Lebanon after an escalation in the conflict between Israel and the Lebanon-based militant group Hezbollah.
The leader of the Bloc Quebecois says his party 'might play a role' in helping the Liberals get House of Commons business rolling again 鈥 after days of Conservative-led debate on a privilege matter 鈥 but that his assistance would come at a cost.
The national security and intelligence adviser is rejecting the notion there are traitors in the House of Commons, despite an eyebrow-raising report from a spy watchdog that flagged questions about politicians' loyalties.
COVID-19 could be a powerful risk factor for heart attacks and strokes for as long as three years after an infection, a large new study suggests.
The Ontario Ministry of Health says four people have been sickened after consuming beef tongue believed to be contaminated with listeria.
One in eight women will be diagnosed with invasive breast cancer in their lifetimes, according to the American Cancer Society. Breast cancer is the second leading cause of cancer death for women in the United States, with 42,000 women dying every year from this cancer.
The research that won Geoffrey Hinton a Nobel Prize for physics was the product of plenty of work carried out before artificial intelligence was the buzzword it is today.
As if the largest bug to ever live 鈥 a monster nearly nine feet long with as many as 64 legs 鈥 wasn鈥檛 terrifying enough, scientists could only just imagine what the extinct beast鈥檚 head looked like.
The space rock is slinging toward Earth from the outer reaches of the solar system and will make its closest pass on Saturday. It should be visible through the end of October, clear skies permitting.
A controversial film about the rise of Donald Trump is coming out this week, despite his campaign calling it 'election interference by Hollywood elites' and threatening to file a lawsuit.
Jenna Fischer is highlighting Breast Cancer Awareness Month by sharing that she is now 'cancer free' after she was diagnosed with the disease in October 2023.
Sean 鈥楧iddy鈥 Combs wants to go to trial on sex trafficking charges next spring, lawyers for the jailed hip-hop mogul told a judge on Wednesday.
Siskinds LLP says a $70.25 million class-action settlement has been reached with TD Asset Management over commissions paid to discount brokers.
A new report says growth in average asking rents across Canada last month slowed to the lowest rate since October 2021, at 2.1 per cent year-over-year.
A new report says condo inventory is on the rise in most major Canadian markets as more sellers are listing their properties in anticipation of growing demand from buyers.
An elevator mechanic mistakenly threw out a piece of artwork, made to look like empty beer cans, assuming it was litter, a Dutch museum revealed earlier this month.
Have you ever seen videos of hovercrafts online or on TV and thought, 'Wow, I wish I could ride one of those.' One Alberta man did, and then built his own.
A wildlife rescue in B.C. is caring for two orphaned bobcat kittens who have become as inseparable as 'real sisters' even though it's highly unlikely they are actually from the same litter.
Saskatchewan鈥檚 Jessica Campbell has made hockey history, becoming the first ever female assistant coach in the National Hockey League (NHL).
The NFL's Tampa Bay Buccaneers and NHL's Tampa Bay Lightning have left Florida ahead of Hurricane Milton to practice the rest of the week.
RJ Barrett will miss the rest of the Toronto Raptors' pre-season with an injury.
Hundreds of thousands of vehicles are being recalled in Canada due to a steering-related issue that could increase a driver's risk of crash.
Mercedes-Benz has partnered up with the Ontario Vehicle Innovation Network (OVIN) and the provincial government to launch a new 鈥渋ncubator program鈥. One of the first three locations is Windsor, with the other two going to Toronto and Kitchener-Waterloo.
New data from the Insurance Bureau of Canada (IBC) shows that even though claims for auto theft dropped in the first half of 2024 compared to their 2023 peak, the rates of reported theft remain well above those of years prior.
Have you ever seen videos of hovercrafts online or on TV and thought, 'Wow, I wish I could ride one of those.' One Alberta man did, and then built his own.
Saskatchewan鈥檚 Jessica Campbell has made hockey history, becoming the first ever female assistant coach in the National Hockey League (NHL).
A B.C. couple is getting desperate 鈥 and creative 鈥 in their search for their missing dog.
Videos of a meteor streaking across the skies of southern Ontario have surfaced and small bits of the outer space rock may have made it to land, one astronomy professor says.
A unique form of clouds made an appearance over the skies of Ottawa on Sunday evening.
Bernie Hicks, known as the 鈥楤atman of Amherst,鈥 always wanted to sit in a Batmobile until a kind stranger made it happen.
Bubi鈥檚 Awesome Eats, located on University Ave West took to social media to announce the closure on Friday.
Weeneebayko Area Health Authority and the Government of Ontario have awarded a $1.8 billion fixed-price contract to design, build and finance a new Far North hospital.
Manitobans are in cleanup mode after intense winds barreled through southern parts of the province this weekend.
A B.C. woman who was recorded praising Hamas as 'heroic and brave' can return to protest rallies, authorities confirmed this week.
The leaders of B.C.'s main political parties sparred over health care, housing, and affordability Tuesday, pitching competing visions for how to address the most urgent issues facing the province in a debate punctuated by a few feisty exchanges.
A suspect remains at large after an assault sent a man to hospital with serious injuries in Nanaimo, B.C.
Police say there are 'early indications' that a stolen vehicle was involved in a fiery crash in Toronto involving two TTC buses early Wednesday morning.
Toronto Mayor Olivia Chow is expressing regret for not attending a massive vigil held earlier this week where the city鈥檚 Jewish community commemorated one year since the October 7 terrorist attack. But her explanation isn鈥檛 adding up, event organizers say.
Hurricane Milton is about to hit Florida and Toronto Pearson International Airport says several flights to the state have been cancelled as a result.
Alberta Health Minister Adriana LaGrange announced a new tentative compensation agreement for resident physicians Thursday as part of a push to recruit, train and keep more physicians in the province.
An Airdrie resident is facing several charges after police say they were caught in possession of several stolen vehicles.
Calgary police are searching for a suspect or suspects in a stabbing that occurred in the city's southeast on Tuesday evening.
As one of the most powerful hurricanes threatens to make landfall in Tampa Bay, residents brace for the impact.
As the LRT's new north-south line prepares to open, many Barrhaven transit users will still have to use buses and transfer to commute downtown.
A new report from Rentals.ca and Urbanation shows the average cost to rent an one-bedroom apartment was $2,042 a month in September, down from $2,044 a month in August.
Three young people aged 17, 19 and 20 were arrested after shots were fired late on Tuesday near Old Montreal. No one was injured in the shooting, but the suspects will be interviewed by Montreal police investigators.
Canada's official languages commissioner is expressing concern over Quebec's decision to cap the number of students who can enrol in the province's English-language junior colleges.
Encouraged by a recent poll, the Quebec Liberal Party (PLQ) says it is feeling a groundswell of support among the population. A Leger opinion poll published in the Quebec media on Wednesday suggests that if the PLQ chose Pablo Rodriguez as its leader, it would be first in the polls.
A cougar was spotted early Wednesday morning within the city of Lloydminster, police are warning the public.
Randy Boissonnault, MP for Edmonton Centre and the federal minister of employment, workforce development and official languages, has been named the ministerial lead of Jasper's rebuild.
Hurricane Milton is a Category 4 storm forecast to bring extreme flooding, high winds and heavy rain to the central west coast of Florida.
Premier Tim Houston said he was notified on Monday morning that funds had been allegedly stolen from the Pictou East Riding Association.
Former CTV Atlantic employee Eric Bungay who now works for a CBS affiliate in Tampa Bay is bracing for Hurricane Milton's arrival.
Hurricane Milton is a Category 4 storm forecast to bring extreme flooding, high winds and heavy rain to the central west coast of Florida.
A 42-year-old Winnipeg man has been charged with human smuggling following an investigation near a Canada-U.S. border crossing in Manitoba.
A Winnipeg landlord is facing $9,000 in penalties following a mass eviction at a Winnipeg apartment block this summer.
Hurricane Milton is a Category 4 storm forecast to bring extreme flooding, high winds and heavy rain to the central west coast of Florida.
The Saskatchewan New Democrats are touring the Parkland region, vowing to end rural emergency room disruptions if they form government this fall.
Those who are interested in running for mayor, city council or school board in Regina's upcoming civic election have until 4 p.m. this afternoon to submit their paperwork.
A 17-year-old boy has been charged in connection with multiple incidents in late September that saw two Regina houses shot at during the overnight hours.
Another beluga whale has died at Marineland and four years into a provincial probe, Ontario's solicitor general is saying little about the investigation's progress.
The new Sports and Entertainment Centre is set to be built in an empty parking lot, right next to the existing Civic Centre arena, which is where the Bulldogs play.
Noah Rau was identified as having Olympic potential in bobsleigh, despite knowing very little about the sport before the 2024 RBC Training Ground qualifier in Milton, Ont.
Dozens of people gathered at Saskatoon city hall Tuesday to voice their concerns about the growing issue of homelessness in our city, and to offer their own solutions.
The province鈥檚 consumer watchdog is investigating a Saskatoon company selling luxury vacation condos in Mexico.
The Saskatoon Police Service (SPS) is renewing public calls for help catching Timloh "Butchang" Nkem, a man deemed the city's most wanted man.
Hurricane Milton is a Category 4 storm forecast to bring extreme flooding, high winds and heavy rain to the central west coast of Florida.
Hundreds of thousands of vehicles are being recalled in Canada due to a steering-related issue that could increase a driver's risk of crash.
Highway 144 is reopened north of Sudbury after a two-vehicle collision between a commercial and passenger vehicle happened around 1 p.m. Tuesday, police say.
The province is boosting enrollment in Basic Constable Training at the Ontario Police College in Aylmer by 80 recruits per year.
The widow of a London firefighter who died from cancer is applauding a federal commitment to study its prevalence.
St. Thomas police are on scene of a vehicle collision involving a pedestrian.
The jury reached a verdict on Wednesday in the 1994 Katherine Janeiro murder case, finding her former boyfriend, Bruce Ellis, not guilty.
Provincial police are investigating reports of an armed robbery in Amaranth Township that sent one person to the hospital in critical condition.
Police arrested a man they say is responsible for a rash of robberies at convenience stores in Barrie over the last 10 months.
The Windsor Police Service (WPS) has arrested one suspect in connection to a child exploitation investigation.
Tecumseh residents were able to give their input on Tuesday regarding a proposed residential development in their area.
Foreign Affairs Minister M茅lanie Joly says Canadians in Florida should leave and people planning to travel there should postpone as the state braces for the impact of Hurricane Milton.
A suspect remains at large after an assault sent a man to hospital with serious injuries in Nanaimo, B.C.
The leaders of B.C.'s main political parties sparred over health care, housing, and affordability Tuesday, pitching competing visions for how to address the most urgent issues facing the province in a debate punctuated by a few feisty exchanges.
While the high school hallways were empty of students, Alison Calder was full of questions about her teaching career.
A U.S. District Court judge in Montana has sentenced a 27-year-old man from Kelowna, B.C., to 18 months in prison for using fake names to buy guns with the aim of selling them in Canada.
Nearly two years after a man was stabbed to death in downtown Kelowna, RCMP have made an arrest in the case.
NDP Leader David Eby is promising to offer a $75-million loan forgiveness program to entice doctors, nurses and heath professionals to expand health-care services in rural British Columbia.
Charges have been laid against a 44-year-old man following a traffic stop in Brocket, Piikani Nation RCMP said Tuesday.
A metal fabrication company west of Medicine Hat has been fined by Alberta Occupational Health and Safety (OHS) following a workplace fatality in 2023.
A Lethbridge police officer involved in a scandal involving former Lethbridge New Democrat MLA Shannon Phillips has been reprimanded.
Jeff Warner from Aidie Creek Gardens in the northern Ontario community of Englehart has a passion for growing big pumpkins and his effort is paying off in more ways than one.
A woman in Greater Sudbury, Ont., said "It doesn't get more Canadian than this" when she spotted a black bear dumpster diving at a Tim Hortons last month.
The Federation of Northern Ontario Municipalities (FONOM) is the latest organization to call on the Doug Ford government to re-open dialogue with an airline service that transports lower-income Canadians to crucial medical care far from home.
A Conservative MP from Newfoundland and Labrador says some small towns in his rural riding are overrun with crime, but police say they haven't received reports to that effect.
As millions in federal funding flow into a Labrador group whose claims of Inuit identity have been rejected by Indigenous organizations across Canada, a national Inuit leader worries the Liberal government is putting the rights of Indigenous Peoples at risk.
He may not have logged the fastest time or even gone the full distance, but residents of a Newfoundland town agree the goat who unexpectedly joined the local weekend half marathon was the event's undisputed champion.
The Shopping Trends team is independent of the journalists at 愛污传媒. We may earn a commission when you use our links to shop.聽Read about us.
