Amazon triples quarterly profit as cloud surges

NEW YORK - E-commerce titan Amazon said profit in the first three months of 2024 tripled as its cloud, ads, and retail businesses thrived.

Amazon shares were up about one percent in after-market trades that followed release of the earnings figures, with Wall Street keeping a close eye on the impact of AI as well as costs involved.

"It was a good start to the year across the business," Amazon chief executive Andy Jassy said in an earnings release.

The Seattle-based company reported $10.4-billion in profit on revenue of $143.3-billion, compared with a profit of $3.2-billion on $127.4-billion in sales in the same period a year earlier.

"Amazon opens its new fiscal year with a robust set of numbers that show it has mostly brushed off pressures in the consumer economy," GlobalData managing director Neil Saunders said in a note to investors.

Sales at Amazon online stores grew by seven percent in the quarter despite competitive pressure from rivals such as Shein and Temu, according to Saunders.

"Our customer data still shows that Amazon is a focal point for those consumers wanting value for money and convenience," Saunders said.

"We also believe that Prime members are leaning more heavily into Amazon to maximize value from their subscriptions."

Growth in online store sales indicated last year's turnaround at Amazon's e-commerce business is continuing, according to Emarketer senior analyst Blake Droesch.

"While the core e-commerce business is no longer the biggest growth driver, it remains an essential component of the Amazon flywheel, particularly in propelling its ad business," Droesch said.