Amazon Stock Jumps as Cloud Growth Fuels Blowout Quarter
Amazon beat expectations for the first quarter and the Dow Jones stock is soaring. Here's what you need to know.
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.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free 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
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
A Lesson From the School of Rock About the MarketsIt's hard to hold your nerve during a downturn, but next time the markets take a tumble, remember this quick rock 'n' roll tutorial and aim to stay invested.
-
I retired at 65 with $7.8 million and feel like I over-saved. My 40-something son is on the same path. Should I tell him to reconsider?We ask financial experts for advice.
-
A Lesson From the School of Rock (and a Financial Adviser) as the Markets Go Around and AroundIt's hard to hold your nerve during a downturn, but next time the markets take a tumble, remember this quick rock 'n' roll tutorial and aim to stay invested.
-
I'm a Financial Pro: This Is How You Can Guide Your Heirs Through the Great Wealth TransferFocus on creating a clear estate plan, communicating your wishes early to avoid family conflict, leaving an ethical will with your values and wisdom and preparing them practically and emotionally.
-
To Reap the Full Benefits of Tax-Loss Harvesting, Consider This Investment Strategist's StepsTax-loss harvesting can offer more advantages for investors than tax relief. Over the long term, it can potentially help you maintain a robust portfolio and build wealth.
-
Social Security Wisdom From a Financial Adviser Receiving Benefits HimselfYou don't know what you don't know, and with Social Security, that can be a costly problem for retirees — one that can last a lifetime.
-
Take It From a Tax Expert: The True Measure of Your Retirement Readiness Isn't the Size of Your Nest EggA sizable nest egg is a good start, but your plan should include two to five years of basic expenses in conservative, liquid accounts as a buffer against market volatility, inflation and taxes.
-
Dow Adds 472 Points After September CPI: Stock Market TodayIBM and Advanced Micro Devices created tailwinds for the main indexes after scoring a major quantum-computing win.
-
October Fed Meeting: Live Updates and CommentaryThe October Fed meeting is a key economic event, with Wall Street waiting to see what Fed Chair Powell & Co. will do about interest rates.
-
The Delayed September CPI Report is Out. Here's What it Signals for the Fed.The September CPI report showed that inflation remains tame – and all but confirms another rate cut from the Fed.