Amazon Web Services (AWS), the company’s cloud division, saw a 16.9% rise in quarterly revenue, reaching $29.27 billion. However, this fell short of the expected 17.4% growth and $30.9 billion in sales.
The giant e-commerce and cloud services company reported $155.7 billion in quarterly revenue, a 9% increase compared to last year and higher than analysts’ expectations. Its net income was $17.1 billion, or $1.59 per share, up from $10.4 billion, or 98 cents per share, a year earlier, exceeding Wall Street’s forecasts.
To tackle these challenges, Amazon is focusing on keeping prices low and is making significant investments in artificial intelligence and cloud technology. The company plans to spend over $100 billion in 2025 to expand its AWS services and improve its AI offerings.
CEO Andy Jassy said, “We’ve noticed more buying in some areas, which could be people preparing for possible tariff changes.”
Despite facing short-term challenges, Amazon’s long-term plan involves significant investments in AI and cloud infrastructure. These investments are expected to fuel future growth and help the company stay competitive in the cloud computing market.
About the company
Amazon Web Services (AWS) is Amazon’s cloud computing branch. It provides cloud platforms and services that people, businesses and governments can use on demand. These services include computing power, storage, machine learning, and artificial intelligence. AWS is one of the biggest cloud providers globally and is very important to Amazon’s business, helping it make a lot of money.
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