By Deborah Mary Sophia and Greg Bensinger
April 29 (Reuters) – Amazon.com on Wednesday reported cloud sales growth above Wall Street expectations, driven by strong enterprise spending as companies continue to devote tremendous resources to their artificial intelligence efforts.
Still, shares dipped about 3.7% in extended trading after it projected current-quarter operating income between $20 billion and $24 billion, a slightly wider downside range from the current midpoint estimate of $22.62 billion, and after sales growth in rival Alphabet’s cloud division outpaced the Seattle company.
Revenue at Amazon Web Services (AWS) jumped 28% to $37.6 billion in the first quarter, compared with analysts’ average estimate of a 25.1% increase to $36.6 billion, according to LSEG. Net sales overall grew to $181.5 billion.
Amazon – the world’s largest cloud services provider – has boosted investor confidence by deepening its partnership with the two biggest AI firms,…
https://finance.yahoo.com/markets/stocks/articles/amazon-beats-quarterly-cloud-growth-200400727.html
