Going into this earnings season, analysts had downgraded their expectations for S&P 500 companies — but the Magnificent Seven kept slaying. Yesterday, Amazon revealed its earnings report, showcasing a 13% revenue increase, driven by its most profitable and rapidly growing segments.
- Following in the footsteps of other tech giants, Amazon reported strong advertising revenue, buoyed by ads on Prime Video, resulting in a 24% sales boost to $11.8B.
- Amazon Web Services (AWS), the company’s cloud computing arm, handily surpassed analyst forecasts thanks to higher cloud and AI spending. AWS sales soared by 17% to $25B, crossing the milestone of $100B in annualized revenue for the first time.
But still no dividend… Analysts hoped that Amazon, which has more than tripled its net income year-over-year and increased its operating cash flow to nearly $100B, would declare its first-ever dividend. That would’ve put the company alongside other major tech players like Meta and Alphabet, who recently announced their first dividend payments. However, Amazon seems resistant to peer pressure… but with a double-digit growth forecast for Q2, investors have plenty to get excited about. Plus, there’s always next earnings season.
