Amazon beat Wall Street’s expectations for Q1 earnings due to cost-cutting, but its stock dropped in extended trading due to concerns over the duration of the slowdown in cloud computing growth. AWS sales increased 16% to $21.4 billion in Q1, which is a slowdown from the 37% growth in the same period last year. Despite analysts projecting a 15% growth for AWS, Amazon management said on the earnings call that the unit is seeing slower growth in April compared to Q1.
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Summary
Article Name
Amazon's Stock Drops on Cloud Computing Concerns Despite Earnings Beat
Description
Amazon beat Wall Street's expectations for Q1 earnings due to cost-cutting, but its stock dropped in extended trading due to concerns over the duration of the slowdown in cloud computing growth.
Author
Susan Jane
Publisher Name
IBD
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