Amazon Reports Strong Q1 Earnings, Boosted by AI and Cloud Services

Despite a robust first-quarter performance, Amazon's future growth forecast remains conservative, raising questions about its long-term strategy.

Amazon's Q1 2024 revenue reached $143.3 billion, a 13% increase year-over-year, with earnings per share at 98 cents, surpassing expectations.
AWS, Amazon's cloud division, reported a 17% growth in revenue, contributing significantly to the company's profitability with a notable 84% rise in operating profit.
The company's advertising revenue grew by 24%, benefiting from expansions in its Prime Video and online stores.
Despite strong earnings, Amazon provided a conservative revenue forecast for Q2 2024, projecting growth at the lower end of market expectations.
Investments in AI technology, including the launch of Amazon Q and the AI-driven Rufus shopping assistant, underscore Amazon's focus on innovation.