Amazon is one of the best e-commerce companies in the market right now and it was started way back in the late 90s which means that the company has not just risen to limelight all of a sudden. It took years and years of effort for the company and its founder to get his company to the stage where they are right now. It is worth noting that Jeff Bezos left the CEO position of his company last year and gave it to Andy Jassy who has been running the company ever since and we must say that he is handling the job quite well.
Now, Amazon revealed their Q1 2023 earnings and profits last week and we can tell you that there are a lot of positives and some negatives as well. It is worth noting that the net positive is that Amazon posted an above-expected revenue in the first quarter of this year compared to last year and a part of it is also due to the cost-cutting measures and layoffs that took place at the company. Apart from that, it is also worth noting that the e-commerce side of things remained stable and it did not show a rise nor did it grow at a slower pace. However, the reason behind Amazon’s higher-than-expected revenue were its ad business as well as cloud business.
“Amazon did what it needed to do in Q1 by reversing–or at least stalling–its most troublesome declining growth trends,” said an analyst after Amazon posted its revenue figures. It is worth noting, however, that there are still concerns about the Amazon AWS cloud business which is by far the most profitable business that Amazon has been running right now.
Amazon CEO Andy Jassy also noted the concern from his investors and said that the slowdown in growth of Amazon’s AWS department is because companies have become more cautious in spending and that they are facing “short-term headwinds”. You must note that Amazon reported a 16% growth in the AWS business this year which is still good but much slower compared to a 37% growth in the first quarter last year.
