Amazon’s cloud-computing unit and Prime Video ad dollars fuel strong 1Q results, reports show

Amazon reported strong first-quarter results on Tuesday, with revenue reaching $143.31 billion, a 13% increase from the same period last year. The e-commerce giant’s net income was $10.43 billion, exceeding Wall Street analysts’ expectations.

CEO Andy Jassy attributed the success to improvements in customer experience and financial results. The company saw strong consumer spending during the holiday season and held a successful discount event in March.

Despite a slowdown in the economy, U.S. consumer spending has remained robust. Amazon’s Chief Financial Officer noted that customers are being cautious with their spending, looking for deals and trading down.

Amazon’s cloud computing unit, Amazon Web Services, saw a 17% increase in sales to $25.04 billion. The company has been leveraging its AI capabilities to attract more businesses to its cloud business, with Jassy stating that AWS is on track for $100 billion in annual revenue.

In addition to its core retail business, Amazon’s online advertising business saw a 24% spike in sales, driven by sponsored products. The company recently introduced ads on Prime Video, attracting new advertisers.

Shares in Amazon rose about 2% in after-hours trading following the earnings report. The company expects to post net sales between $144 billion and $149 billion in the second quarter. Despite facing regulatory hurdles, Amazon continues to focus on profitability and innovation under Jassy’s leadership.