Amazon is forecasting a record $100 billion in revenue from AWS this year, driven by demand for cloud services for artificial intelligence needs.
Amazon reported impressive financial results for the first quarter of 2024, with net profit increasing more than 3 times compared to the same period last year, amounting to $10.4 billion. Revenue showed a 12% increase, reaching $143.3 billion.
Key Business Areas’ Prosperity
Profit growth was fueled by Amazon’s key business areas—cloud services, advertising, and online retail. CEO Andy Jassy expressed satisfaction with the strong start to the year for the entire business.
Particularly noteworthy is AWS’ performance, with revenue jumping 17% to $25 billion. Demand for cloud services from companies modernizing their IT infrastructure for new artificial intelligence capabilities is growing.
Expansion Plans and Advertising Growth
Amazon plans to expand AWS data centers, with new centers slated for Mexico, Saudi Arabia, and the United States. Advertising revenue saw a dynamic growth of 24%, reaching $11.8 billion, making Amazon’s platform increasingly attractive for advertisers.
AI Investments and Market Expectations
Amazon highlighted its investments in artificial intelligence, including Rufus chatbot testing and generative AI models to support sellers. Overall, Amazon’s financial results exceeded market expectations, driving a nearly 75% rise in stock price over the past 12 months, concludes NIXSolutions.
We’ll keep you updated on Amazon’s financial performance and strategic developments as they unfold.