Amazon shares rose 11.5% in “after hours,” with investor sentiment boosted by revenue earned in the first quarter of this year, which was above expectations.
Quarterly revenue rose 9% year over year to $127.4 billion, higher than the $124.5 billion estimated by analysts polled by Bloomberg.
This figure includes the negative exchange rate impact of $2.4 billion, without which revenue would have been up 11% year-on-year.
Revenue was driven by better-than-expected performance in the advertising and cloud segments.
The technology company said in a statement that Amazon made a profit of $3.2 billion, compared to a loss of $3.8 billion in the first three months of last year.
However, earnings fell significantly from analyst estimates compiled by Bloomberg, which indicated $7.1 billion.
The company confirms that this net result does indeed include a $500 million reduction in its 17.23% stake in Rivian. It should be noted that since the beginning of the year, the car brand has lost 31.06% on the stock exchange.
Revenue is expected to grow up to 10% in the second quarter
In the report and accounts, the company also provides an account of “guidance” for the second quarter of this year.
Amazon expects revenue to grow between 5% and 10% year-on-year, between $127 billion and $133 billion.
This estimate “includes the negative impact of exchange rates by approximately 30 basis points,” the company warns.
Operating profit between April and June should settle in a range of $2 billion to $5.5 billion, up from the $3.3 billion achieved in the second quarter of last year.
These projections do not include mergers and acquisitions, restructurings or other transactions.
(Story updated at 9:37 p.m.).
Emily Brontë is a journalist and feature writer specialising in culture, entertainment, literature, and current affairs. She is dedicated to producing clear, accurate reporting that helps readers stay informed about developments in the UK and around the world.
