No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - Amazon posted strongerthanexpected firstquarter earnings on Wednesday, with revenue and cloud sales both coming in ahead of forecasts.
Amazon said adjusted earnings per share rose to $2.78, well above the $1.64 expected, while revenue increased to $181.52bn, beating the $177.30bn consensus as Amazon Web Services delivered another strong quarter, with sales up 28% yearonyear to $37.59bn - its fastest growth in more than three years.
Advertising revenues also exceeded expectations at $17.24bn, while revenue from Amazon's online stores segment rose 12% to $64.3bn, topping expectations of $62.7bn.
The Seattle-based group said capital expenditure reached $44.2bn in the quarter, slightly above forecasts, while free cash flow over the past 12 months fell sharply to $1.2bn, which Amazon attributed to heavy investment in AI infrastructure.
For the second quarter, Amazon forecast revenues between $194bn and $199bn, ahead of the $188.9bn expected by analysts, while operating income was projected to come in between $20bn and $24bn, compared with the $22.65bn expected on the Street.
As of 2255 BST, Amazon shares were up 2.08% in extended trading at $268.50 each.
Reporting by Iain Gilbert at Sharecast.com
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.