Amazon’s cloud business grows almost 37%, but slows from last quarter

Amazon’s cloud business grows almost 37%, but slows from last quarter


Amazon’s cloud unit grew 36.5% year over year in the first quarter, a bit faster than analysts projected. But Amazon shares were down about 9% in after-hours trading, as investors focused on the e-commerce giant’s $3.8 billion overall net loss.

The cloud business results point to lighter but still brisk demand for computing, storage and database services delivered from faraway server farms. Amazon Web Services’ revenue growth slowed from 39.5% in the fourth quarter. Meanwhile, AWS’ fiercest rivals, Microsoft’s Azure and Alphabet’s Google Cloud Platform, have maintained constant growth or decelerated slightly.

Amazon disclosed in its quarterly earnings announcement that AWS revenue totaled $18.44 billion in the quarter, above the $18.27 billion consensus among analysts polled by StreetAccount. That works out to about 16% of Amazon’s total revenue.

Adam Selipsky, CEO of Amazon Web Services, speaks during the CERAWeek by S&P Global conference in Houston on March 8, 2022.

Aaron M. Sprecher | Bloomberg | Getty Images

And the cloud isn’t just another quickly expanding business for Amazon. At Amazon, cloud means profit. AWS threw off $6.52 billion in operating income in the first quarter, up almost 57% and higher than the $5.62 billion StreetAccount consensus. Amazon’s total operating income was $3.67 billion in the quarter, meaning that the overall business would have lost even more money were it not for the profitable AWS.

AWS’ operating margin widened to 35.3% from 29.8% in the fourth quarter.

Amazon introduced AWS in 2006, before Microsoft Azure or the Google Cloud Platform, and in 2020 AWS led the market with around 41% share, according to research firm Gartner.

In the quarter AWS said Stellantis, the automaker previously known as Fiat Chrysler, will draw on its cloud services for in-car dashboard software and electronics retailer Best Buy will use more AWS tools.

WATCH: The enterprise ‘pie’ is growing, says Evercore ISI’s Materne



Source

Ethereum is powering Wall Street’s future. The crypto scene at Cannes shows how far it’s come
Technology

Ethereum is powering Wall Street’s future. The crypto scene at Cannes shows how far it’s come

CANNES — Wall Street’s new plumbing is being built on Ethereum and this week its architects took over the same French Riviera villas and red carpet venues that host the Cannes Film Festival in May. The Ethereum Community Conference, or EthCC, took over the beachside town that was swarming with crypto founders, developers, and some […]

Read More
Trump inaugural impersonators scammed donors out of crypto, feds say
Technology

Trump inaugural impersonators scammed donors out of crypto, feds say

Sopa Images | Lightrocket | Getty Images Scammers impersonating the President Donald Trump and Vice President JD Vance Inaugural Committee fraudulently stole hundreds of thousands of dollars in cryptocurrency, according to a new complaint filed by federal prosecutors. The perpetrators used phony email addresses made to look like they belonged to the inaugural committee to […]

Read More
OpenAI CEO Sam Altman says he’s ‘politically homeless’ in July 4 post bashing Democrats
Technology

OpenAI CEO Sam Altman says he’s ‘politically homeless’ in July 4 post bashing Democrats

OpenAI CEO Sam Altman, pictured, speaks with SoftBank Group CEO Masayoshi Son at an event in Tokyo on Feb. 3, 2025. Tomohiro Ohsumi | Getty Images News | Getty Images OpenAI CEO Sam Altman posted on X Friday, saying he finds himself “politically homeless” as the Democratic party is no longer aligned with encouraging a […]

Read More