Amazon share price up 1% on Q1 results revenue beat
The e-commerce company's stock is volatile after a better-than-expected Q1 earnings report.
Amazon share price is up in volatile US afterhours trading after an impressive Q1 earnings report. Amazon’s Q1 earnings report easily beat Wall Street predictions.
Amazon earnings:key figures
| Earnings per share | $7.09 |
| Revenue | $59.7 billion |
| Amazon Web Services(AWS) revenue | $7.7 billion |
Amazon share price up 1% on Q1 results revenue beat
Amazon’s Q1 earnings per share were $7.09, far surpassing the $4.72 expected from financial experts. Amazon’s Q1 revenue was $59.7 billion, meeting Wall Street expectations. The corporation’s Amazon Web Services (AWS)cloud computing revenue was $7.7 billion, matching earlier predictions. AWS's revenue grew by 42% since Q4 2018.
While Amazon’s Q1 earnings report shattered expectations, the one weak spot in Amazon’s Q1 revenue was its physical stores, like Whole Foods. Moody’s retail analyst, Charlie O’Shea, said that though sales increased, improvement was slight.
‘On the non-AWS side, sales are slowing, with physical stores (i.e. Whole Foods) essentially flat, and we note the reduced growth is largely generated by third-party sales,’ said O’Shea.
Amazon’s sales slowed, but bigger profits from AWS and the corporation’s advertising business increased Amazon’s Q1 earnings. Amazon advertising brought in $2.7 billion in revenue.
How did Amazon’s Q1 earnings compare to other ecommerce companies?
Compared to competitor eBay, Amazon’s Q1 earnings were positive. eBay’s revenue grew after increased sales and cost controls.
What’s next for Amazon’s results?
Amazon’s Q2 revenue forecast is to earn between $59.5 billion -$63.5 billion. That figure is in line with Wall Street expectations of Amazon’s earnings to be $59.65 billion.
Amazon’s Q1 earnings grow on strength of cloud business
Amazon’s Q1 profits skyrocketed on the strength of its AWS cloud services division competing with Google Cloud. Though Amazon’s sales may be stagnant, branching out into cloud computing paid off for Amazon’s Q1 earnings.
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