Amazon shares rose more than 10 per cent after the company smashed Wall Street sales projections in its first-quarter financials.
The e-commerce giant posted sales of A$192.25 billion, an increase of 9 per cent year-on-year, and some 50 per cent higher than Wall Street estimates.
Net profit for the quarter was A$4.78 billion, compared with the A$5.79 loss the company posted for the first three months of 2022.
Amazon has forecast revenue between A$191.6 billion and $200.66 billion for the current quarter.
This return to form comes in the midst of a massive realignment which has seen the company slashed 10 per cent of its staff in the past three months.
Amazon Chief Financial Officer Brian Olsavsky said that international business and advertising were the strong points during the quarter, and that its package fulfilment centre is earning more after the reduction in staff and demand.
“Labor has been much more predictable,” Olsavsky said. “We feel better about the balancing of capacity and demand.”
AWS sales increased by 15.8 per cent for the quarter, beating analyst’s expectations but representing the slightest increase in the division’s history. CEO Andy Jassy warned of “short-term headwinds” in the cloud sector in his shareholder letter.
The company’s advertising division grew by 21 per cent.
