Current:Home > MarketsAmazon reports strong 1Q results driven by its cloud-computing unit and Prime Video ad dollars -FinanceMind
Amazon reports strong 1Q results driven by its cloud-computing unit and Prime Video ad dollars
View
Date:2025-04-18 08:21:36
NEW YORK (AP) — Amazon on Tuesday reported strong results for the first quarter, driven by growth in its cloud-computing unit and a new surge of advertising dollars from its Prime Video streaming service.
The Seattle-based e-commerce giant said it brought in $143.31 billion in revenue in the first three months of this year, a 13% jump compared to the same period last year. Net income came out to $10.43 billion, or 98 cents per share. That soundly beat Wall Street analysts’ expectations for 84 cents a share, according to FactSet.
“It was a good start to the year across the business, and you can see that in both our customer experience improvements and financial results,” Amazon CEO Andy Jassy said in a statement.
The nation’s biggest online retailer is coming off better-than-expected results for the holiday shopping period, when it saw strong consumer spending aided by discounts and faster shipping speeds. Amazon held another discount event in late March, right before the end of the first quarter.
Aside from its core retail business, Amazon said first-quarter sales in its cloud computing unit, Amazon Web Services. amounted to $25.04 billion, up 17% from the same period last year.
Sales in the company’s online advertising business also spiked 24%, partly driven by an influx of ad dollars coming from Prime Video. After years of giving Prime subscribers ad-free access to their favorite movies and TV shows, Amazon implemented a new policy in late January that lets viewers avoid ads only if they pay an additional $2.99 a month.
Shares in Amazon.com Inc. rose 3% in after-hours trading.
The company says it expects to post net sales between $144 billion and $149 billion during the second quarter. Analysts are expecting $150.2 billion, according to FactSet.
veryGood! (4)
Related
- Which apps offer encrypted messaging? How to switch and what to know after feds’ warning
- North Korea scraps agencies managing relations with South as Kim Jong Un cites hostility with rival
- Quinta Brunson, Ayo Edebiri and Rhea Seehorn light up the Emmy Awards silver carpet
- Police say a 10-year-old boy from Maryland was attacked by a shark at a Bahamian resort
- 'Squid Game' without subtitles? Duolingo, Netflix encourage fans to learn Korean
- Emmys 2024 winners list: Quinta Brunson and 'The Bear' score early wins
- Nikki Haley vows to be stronger in New Hampshire after third place finish in Iowa Republican caucuses
- Broadway's How to Dance in Ohio shines a light on autistic stories
- 'Vanderpump Rules' star DJ James Kennedy arrested on domestic violence charges
- Bernardo Arévalo faces huge challenges after finally being sworn in as Guatemala’s president
Ranking
- Paige Bueckers vs. Hannah Hidalgo highlights women's basketball games to watch
- A middle-aged Millionaires' Row: Average US 50-something now has net worth over $1M
- Who won Emmy Awards for 2024? See the full winners list here
- Elon Musk demands 25% voting control of Tesla before expanding AI. Here's why investors are spooked.
- Former Danish minister for Greenland discusses Trump's push to acquire island
- Kenya doomsday cult pastor and others will face charges of murder, cruelty and more
- Will Jason Kelce retire? Eagles, NFL fans say goodbye if this was his final game.
- Christina Applegate Gets Standing Ovation at Emmys 2023 Amid Multiple Sclerosis Battle
Recommendation
Whoopi Goldberg is delightfully vile as Miss Hannigan in ‘Annie’ stage return
Primetime Emmy Awards live coverage: Award winners so far, plus all the best moments
Why Sharon Osbourne Doesn't Regret Ozempic After Cautioning Against It
'Abbott Elementary' star Quinta Brunson cries in emotional Emmy speech: 'Wow'
Don't let hackers fool you with a 'scam
Ayo Edebiri's Message to Her Younger Self Is Refreshingly Relatable
Summer House's Sam Feher and Kory Keefer Break Up After Over a Year of Dating
Mother Nature proves no match for Bills fans attending Buffalo’s playoff game vs. Steelers