Amazon Web Services (AWS), the part of Amazon that does cloud computing, made $25.04 billion in the first three months of this year. That’s 17% more money than they made during the same time last year. It did better than what people on Wall Street thought it would do. They were expecting around $24.49 billion.
This growth is faster than the increase they had in the last three months of last year, which was 13%. This shows that AWS is getting even more important in the cloud business.
Now, AWS makes up 17% of all the money Amazon brings in. Amazon’s total revenue for this period was $143,313 billion. AWS is a big reason why Amazon makes so much profit. It brought in $9.42 billion, which is about 62% of all the profit Amazon made. This was more than what analysts thought AWS would bring in, which was $7.52 billion.
Also, AWS’s profit margin, which is how much profit they make compared to how much they spend, got bigger. It was 37.6%, which is the biggest it’s been since at least 2014.
Amazon made a big investment in an AI startup called Anthropic. They put $4 billion into it, showing how serious they are about developing artificial intelligence. Anthropic is known for using AWS chips to train AI models.
Amazon’s CEO Adam Selipsky praised Anthropic for having some of the best AI models out there in certain areas. This investment is part of Amazon’s plan to stay ahead in AI, competing with big names like Google and Microsoft. These companies have also invested heavily in AI, partnering with Anthropic and OpenAI.
Amazon’s advertising business had a really good quarter. They made 24% more money from ads than they did last year, reaching $11.8 billion in revenue. This growth was even better than what analysts expected, who thought it would be around $11.7 billion.
This shows that the digital advertising market is bouncing back strongly. Other big players in digital ads like Meta, Alphabet, and Snap also saw better-than-expected growth.
Amazon’s total revenue for the quarter was $143.3 billion, which is 13% more than last year. They’re relying more on advertising to make money and grow, moving away from just selling stuff online and doing cloud computing.
