Due in large part to the rapid expansion of its well-known cloud computing division, Amazon reported significant improvements in net revenue and profits for the first quarter of its fiscal year on Wednesday.
Sales in its cloud computing division increased by 28% between January and March, the fastest gain in 15 quarters, according to the e-commerce and technology company. Following a 20% increase in sales in the third quarter, Amazon Web Services had a 24% increase in sales in the fourth quarter.
Additionally, the Seattle-based business provided a positive forecast for net sales in the current quarter, above analysts’ projections. But in after-hours trade, shares fell by almost 2% before rallying by roughly 3%.
Investors were keeping a careful eye on Amazon’s quarterly results to see if the company’s $200 billion investment in robotics, artificial intelligence, semiconductors, and satellites was beginning to pay off. When the announcement was made in February, investors were alarmed by the anticipated expenditure for the year, which was 60% more than Amazon’s $128 billion in capital expenditures from the previous year. As a result, the stock fell 11% in after-hours trading. During the prior quarterly results call, CEO Andy Jassy defended the expenditure, stating that Amazon anticipated long-term returns on its capital investments.
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