Amazon reported US$127.4 billion in first-quarter sales on 27 April, up 9%. AWS sales rose 16% to $21.4 billion, but operating profit fell to $5.1 billion from $6.5 billion.
Historical Amazon premises, photographed in 2017. Photo © Tony Webster (2018), “Amazon Fulfillment and Trucks Sign – Shipping Center in Shakopee, Minnesota”. CC BY 2.0. Resized; responsive crops.
On the earnings call, CFO Brian Olsavsky says April’s AWS revenue growth is about five percentage points below the first-quarter rate as customers trim cloud spending.
That implies roughly 11% growth so far in April. It isn’t a completed second-quarter result or a full-quarter forecast.
The segment figures also show why the slowdown matters: AWS profit still exceeds Amazon’s $4.8 billion group operating profit. North America returned to a $0.9 billion profit, but International lost $1.2 billion.
Improving retail results haven’t removed the group’s dependence on cloud earnings.
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