Amazon tops cloud expectations on strong AI demand, shares dip
Amazon reported cloud sales growth above Wall Street expectations, driven by strong demand for AI, with AWS revenue jumping 28% to $37.6 billion. Amazon's shares dipped 3.7% in extended trading after the company projected a wider operating income range.
Amazon's cloud sales growth exceeded Wall Street expectations, driven by strong enterprise spending on AI efforts. AWS revenue jumped 28% to $37.6 billion in the first quarter. Amazon deepened its partnership with AI firms OpenAI and Anthropic, boosting investor confidence. The company's capital expenditures were $44.20 billion, up 76% from the year-earlier period. Amazon forecast current-quarter revenue between $194 billion and $199 billion. AWS generated over $15 billion in annualized AI services revenue.
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