Amazon.com Inc. on Tuesday reported quarterly results that beat Wall Street expectations, as interest in artificial intelligence fuels growth in cloud computing.
CEO Andy Jassy told analysts there is “a huge opportunity in front of us” for Amazon to serve its AI customers.
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Shares of the Seattle-based e-commerce and technology company rose less than 2% in after-hours trading after the company reported lower-than-expected revenue for the current quarter. Shares closed 3.3% lower in regular trading.
Chief Financial Officer Brian Olsavsky told reporters on a conference call that capital spending will increase throughout the year, compared to $14 billion in the first quarter. “This will be the lowest point of the year in terms of quarterly capital spending,” he said.
Amazon.com Inc. on Tuesday reported quarterly results that beat Wall Street expectations, as interest in artificial intelligence fuels growth in cloud computing.
CEO Andy Jassy told analysts there is “a huge opportunity in front of us” for Amazon to serve its AI customers.
Shares of the Seattle-based e-commerce and technology company rose less than 2% in after-hours trading after the company reported lower-than-expected revenue for the current quarter. Shares closed 3.3% lower in regular trading.
Chief Financial Officer Brian Olsavsky told reporters on a conference call that capital spending will increase throughout the year, compared to $14 billion in the first quarter. “This will be the lowest point of the year in terms of quarterly capital spending,” he said.
“A large part of that will be supporting AWS infrastructure, particularly our generative AI efforts,” he said later on a conference call with analysts. Amazon is making upfront investments to build its AI products to meet customer demand, especially as customers seek long-term contracts, he said.
Amazon Web Services (AWS), the largest cloud computing service, reported first-quarter sales of $25 billion, an increase of 17%, compared to the expected $24.53 billion.
In comparison, cloud computing sales for the January-March period increased by 31% for Microsoft and 28% for Alphabet.
AI has gained traction in Silicon Valley since the debut of OpenAI's ChatGPT in late 2022, with billions of dollars in funding to bring chatbots and other artificial intelligence capabilities to more products. A mad dash is underway for this. Amazon announced Tuesday that its enterprise chatbot Q is now publicly available and that it rolled out its Rufus service earlier this year to help customers discover new products on its website.
Jassy said in a statement that AWS is currently on pace to achieve $100 billion in annual revenue.
Amazon bucked the trend of Big Tech announcing dividends after rivals Alphabet and Meta Platforms rolled out perks for investors. His later two announcements were welcomed by investors and pushed up the stock price.
Amazon Web Services (AWS), the largest cloud computing service, reported first-quarter sales of $25 billion, an increase of 17%, compared to the expected $24.53 billion.
In comparison, cloud computing sales for the January-March period increased by 31% for Microsoft and 28% for Alphabet.
AI has gained traction in Silicon Valley since the debut of OpenAI's ChatGPT in late 2022, with billions of dollars in funding to bring chatbots and other artificial intelligence capabilities to more products. A mad dash is underway for this. Amazon announced Tuesday that its enterprise chatbot Q is now publicly available and that it rolled out its Rufus service earlier this year to help customers discover new products on its website.
Jassy said in a statement that AWS is currently on pace to achieve $100 billion in annual revenue.
Amazon bucked the trend of Big Tech announcing dividends after rivals Alphabet and Meta Platforms rolled out perks for investors. His later two announcements were welcomed by investors and pushed up the stock price.
(Only the headline and photo in this report may have been reworked by Business Standard staff. The rest of the content is auto-generated from a syndicated feed.)
