Amazon has announced revenues of 127.4 billion dollars (just over 115 billion euros) between January and March 2023, thus reflecting a 9% year-on-year growth in its billing. But the discordant note has been presented by AWS, its cloud division. Although the segment has improved its sales, its operating profit reveals that it is growing more slowly. Amazon Web Services (AWS) billed $21.4 billion in the first quarter , an improvement of 16% compared to the same period in 2022. However, its operating profit was $5.1 billion, when in the same quarter of the year previous recorded one of 6.5 billion. "There is a lot to like about how our teams deliver to our customers, especially in these times of economic uncertainty ," said the company's CEO, Andy Jassy. "Our stores business continues to improve the costs of serving our distribution network while improving the speed at which our products get into customers' hands. In fact, Jassy has assured that the peak speeds in the delivery of Amazon Prime items are expected to be reached this year.
The worst kept secret of AI: its rise will make big technology companies more powerful The advertising business also "reflects robust growth, primarily thanks to our investments in machine learning that helps our users receive relevant information when they connect with us, which translates into unusually strong results for brands," he continues. However, "AWS's business continues to navigate a sea in which companies make more cautious investments due to the macroeconomic Norway WhatsApp number environment." This is a plausible explanation but, as Jassy himself acknowledges, the unit continues to work on prioritizing "long-term relationships with our clients" to help them "save and more easily deploy technologies such as high-performance language models." size (LLM) or generative artificial intelligences". Despite the slowdown in cloud growth in the midst of a fever for generative AI models, the market has celebrated the results of the e-commerce giant with increases in operations after the market close that were around 12% at the time of the that these lines were written, although they later went back.
The e-commerce giant's operating profit in its North American segment has recorded an operating profit of 900 million dollars: in the previous year's quarter it reflected losses of 1.6 billion. However, in its other segment, the international one, the firm continues to show red numbers with losses of 1.2 billion. The manager of the multinational has also claimed a recent announcement by the firm, its Trainium and Inferentia machine learning chips, its Bedrock managed extensive language model and the CodeWhisperer programming assistant . "We like the fundamentals we see in AWS, and we think it has a lot of growth potential." Amazon's results are known after solid results have also been recorded in the first quarter by other large technology companies such as Google, Meta or Microsoft. Like these 3, Amazon has also been forced to shed its workforce, cutting its workforce by 9%, thus destroying 27,000 jobs. The firm led by Andy Jassy has had to assume costs of $500 million in severance pay and other expenses this first quarter resulting from these massive layoffs.