Amazon’s stock price was sent soaring Thursday after the companys’ 1st Quarter earnings report beat Wall Street expectations.
Earnings came in at 31-cents a share which was 30% higher than expected “For the first quarter our worldwide net sales were $127.4B, up 9% year over year” CFO Brian Osophsky told an afternoon conference call.
AWS saw a slow down to its free-fall, “We’re seeing enterprises continuing to be cautious with their spending in the uncertain time” but CEO Andy Jassy says consumers are spending smarter on cloud services “Customers are looking for way to save money however they can right now; they tell us that most of it is cost optimizing versus cost cutting.”
Amazon saw modest increases in many areas, but Advertising jumped by whopping 23% “With the largest e-commerce shopping venue we have a lot of customers companies seek to reach” says Jassy.
Still, recessionary fears are driving a slowdown in spending “This means our customers are looking to stretch their budgets and are focused on value” says CFO Osophsky.
This news comes just one day after Amazon sent out pink slips to the first of 9,000 workers and brings the total number of expected layoffs in 2023 to 27,000 people.
