Amazon.com (AMZN) stock is up nearly 4% out of the gate Wednesday after the e-commerce giant disclosed higher-than-expected earnings and revenue for its first quarter.
In the three months ended March 31, Amazon's revenue increased 12.5% from the year-ago period to $143.3 billion and its earnings per share (EPS) more than tripled to 98 cents.
"It was a good start to the year across the business, and you can see that in both our customer experience improvements and financial results," Amazon CEO Andy Jassy said in a statement.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The Q1 results beat analysts' expectations, which called for revenue of $142.5 billion and EPS of 83 cents, according to CNBC.
The performance of Amazon Web Services' (AWS), the company's cloud segment, was one of the brightest spots in the results, with sales up 17% year-over-year to $25 billion.
"The combination of companies renewing their infrastructure modernization efforts and the appeal of AWS's [artificial intelligence] AI capabilities is reaccelerating AWS's growth rate," Jassy said while also noting that the segment is now at a $100 billion annual revenue run rate.
"It's very early days in all of our businesses and we remain excited by how much more we can make customers' lives better and easier moving forward," Jassy said. Part of this is also the generative AI tools Amazon is developing and Jassy noted in the earnings call that the company is seeing "considerable momentum on the AI front where we've accumulated a multibillion-dollar revenue run rate already."
Is Amazon stock a buy, sell or hold?
Analysts are overwhelmingly bullish on the e-commerce giant. Indeed, Amazon is the highest-rated of all 30 Dow Jones stocks. According to S&P Global Market Intelligence, the consensus analyst target price for AMZN stock is $214.91, representing implied upside of nearly 20% to current levels. Additionally, the consensus recommendation is a Strong Buy.
Susquehanna Financial Group analyst Shyam Patil is one of those with a Positive (Buy) rating on Amazon. The analyst also has a $220 price target on the Magnificent 7 stock.
While Amazon is facing some macro headwinds, including the potential for slowing consumer spending, as well as increased costs related to generative AI investments, the company remains "a long-term secular grower underpinned by its strong e-commerce, cloud, and advertising businesses and remain Positive," Patil said in a May 1 report.
Related Content
-
The Surprising Truth About Loneliness and LongevityWe've all heard about the epidemic of loneliness that can shorten lives and make retirement miserable. But there's more to the story.
-
The Dollar Index Is Sliding. Is Your Portfolio Prepared?The Dollar Index Is Sliding. Is Your Portfolio Prepared? The dollar's fall has been troubling because inflation appears to be constrained and the economy has been strong. Here's what it means for investors.
-
The Dollar Index Is Sliding. Is Your Portfolio Prepared?
The Dollar Index Is Sliding. Is Your Portfolio Prepared? The dollar's fall has been troubling because inflation appears to be constrained and the economy has been strong. Here's what it means for investors.
-
Seven Financial Considerations When Downsizing for RetirementWith prices going up on everything, you may be looking for a cheaper place to live. To truly evaluate costs, take a hard look at taxes and intangibles.
-
I Have Plenty of Money: Why Do I Need a Long-Term Care Plan?Long-term care planning, whether through insurance or self-funding, is crucial not only for financial protection but also to preserve family relationships and reduce the emotional and logistical burdens on loved ones.
-
The GENIUS, CLARITY, and Anti-CBDC Acts: What Bitcoin Investors Need to KnowMovement on the crypto front at the federal level has the potential to usher in substantial change. Here's what it means for your portfolio.
-
Wellness Stocks to Invest in NowBreakthroughs that help us live longer, healthier lives can also create opportunities for investors.
-
Three Steps for Evaluating a Downsize in Retirement: A Financial Planner's GuideUnless you think things through, you could end up with major (and costly) regrets. To make the right choice, base it on the three keys to retirement happiness.
-
Worried About Your Retirement Income? Four Questions to Ask Yourself, From a Financial PlannerIf you're nearing or in retirement and stressing about your retirement income (so many of us are), consider taking some time to think about these four issues.
-
Stock Market Today: Stocks Step Back From New HighsInvestors, traders and speculators continue the low-volume summer grind against now-familiar uncertainties.
