Amazon Beats Wall Street Q1 Forecasts As Advertising Growth Continues Apace

Amazon beat Wall Street forecasts for profit and revenue in the first quarter as advertising continued to grow at a healthy clip.

Net income increased to 98 cents per share on a diluted basis, up from 31 cents in the year-ago quarter. Total revenue reached $143.3 billion, up 13%.

Advertising services, a category that includes Prime Video ads, increased 24% to $11.8 billion.

“Our advertising efforts continue to benefit from the growth of our stores and Prime Video businesses,” CEO Andy Jassy said in the earnings release.

Amazon shares, which have hit a choppy period after growing steadily in the first two months of 2024, gained 3% in after-hours trading after the earnings report, following a slide of 3% during the regular trading day.

MORE to come …