Amazon has once again posted impressive profits in the first quarter of 2024, marking another strong financial performance for the retail giant.
The company attributes its success to the strategic integration of artificial intelligence (AI) technologies and the growth of its advertising sales.
With overall revenue reaching $143.3 billion in the first three months of the year, a notable 13% increase from the same period in 2023, Amazon surpassed Wall Street’s expectations.
The e-commerce behemoth reported a remarkable surge in net income, more than tripling to $10.4 billion from $3.17 billion in the corresponding period of the previous year, with advertising revenue exceeding $15 billion.
Amazon’s Chief Executive, Andy Jassy, emphasized the pivotal role of AI in driving growth, particularly within Amazon Web Services (AWS), the company’s cloud-computing sector. Revenue from AWS increased by 17% year-over-year to $25 billion, contributing significantly to Amazon’s overall operating profit.
Jassy underscored the company’s ongoing investment in generative AI, highlighting its potential to further enhance AWS capabilities and drive future growth.
The boost in AWS revenue follows a recent slowdown in growth attributed to the COVID-19 pandemic’s recovery phase, which prompted increased demand for cloud infrastructure to support remote work.
However, executives anticipate a resurgence in demand fueled by the expanding applications of AI technologies, particularly within cloud services.
Amazon’s advertising sales also witnessed substantial growth, increasing by 24% year-over-year to $11.8 billion. This surge follows the company’s strategic expansion of advertising initiatives, including the introduction of ads on Prime Video earlier this year.
