Amazon’s earnings trajectory hit a speed bump on Thursday when the company reported a $3.8 billion net loss and slowing growth, but the tech giant didn’t disappoint with one of its main activities: its cloud computing unit.
Amazon Web Services reported net sales of $18.4 billion in Amazon’s fiscal first quarter, up 37% year-over-year, representing a sales rate annualized nearly $74 billion, the Seattle-based company’s chief financial officer Brian Olsavsky said in an earnings conference call Thursday.
Olsavsky said customers including Telefonica, Verizon, Boeing, MongoDB, Amdocs, Bundesliga, Maple Leaf Sports and Entertainment, the National Hockey League and Thread have announced new agreements and service launches supported by the cloud leader. AWS.
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Olsavsky said Amazon spent $61 billion in capital investments in the 12 months ending March 31, adding that 40% of that spending was on infrastructure, primarily supporting AWS, “but also supporting our important consumer business.”
AWS reported operating income of $6.5 billion for the last quarter, compared to $4.2 billion for the same period a year earlier.
Still, Amazon stock fell more than 13% on Friday to $2,497 per share.
Overall, Amazon said its net sales rose 7% to $116.4 billion in the first quarter from $108.5 billion in the same period in 2021. That figure missed the Zacks estimated net sales of $117.02 billion for the quarter, contributing to “Amazon’s slowest ever.” revenue growth,” Zacks said.
Olsavsky also pointed out that Amazon’s overall net loss of $3.8 billion included a pre-tax valuation loss of $7.6 billion included in non-operating expenses from Amazon’s common stock investment. in the electric vehicle manufacturer Rivian Automotive. Ford, another Rivian investor, reported a loss of $3.1 billion from its Rivian investment. Rivian’s stock is down about 69% so far this year.
The company expects second-quarter net sales of between $116 billion and $121 billion, representing growth of between 3% and 7% from the second quarter of 2021.