Amazon share price up 1% on Q1 results revenue beat

The e-commerce company's stock is volatile after a better-than-expected Q1 earnings report.

Amazon share price is up in volatile US afterhours trading after an impressive Q1 earnings report. Amazon’s Q1 earnings report easily beat Wall Street predictions.

Amazon earnings:key figures

Earnings per share $7.09
Revenue $59.7 billion
Amazon Web Services(AWS) revenue $7.7 billion

Amazon share price up 1% on Q1 results revenue beat

Amazon’s Q1 earnings per share were $7.09, far surpassing the $4.72 expected from financial experts. Amazon’s Q1 revenue was $59.7 billion, meeting Wall Street expectations. The corporation’s Amazon Web Services (AWS)cloud computing revenue was $7.7 billion, matching earlier predictions. AWS's revenue grew by 42% since Q4 2018.

While Amazon’s Q1 earnings report shattered expectations, the one weak spot in Amazon’s Q1 revenue was its physical stores, like Whole Foods. Moody’s retail analyst, Charlie O’Shea, said that though sales increased, improvement was slight.

‘On the non-AWS side, sales are slowing, with physical stores (i.e. Whole Foods) essentially flat, and we note the reduced growth is largely generated by third-party sales,’ said O’Shea.

Amazon’s sales slowed, but bigger profits from AWS and the corporation’s advertising business increased Amazon’s Q1 earnings. Amazon advertising brought in $2.7 billion in revenue.

How did Amazon’s Q1 earnings compare to other ecommerce companies?

Compared to competitor eBay, Amazon’s Q1 earnings were positive. eBay’s revenue grew after increased sales and cost controls.

What’s next for Amazon’s results?

Amazon’s Q2 revenue forecast is to earn between $59.5 billion -$63.5 billion. That figure is in line with Wall Street expectations of Amazon’s earnings to be $59.65 billion.

Amazon’s Q1 earnings grow on strength of cloud business

Amazon’s Q1 profits skyrocketed on the strength of its AWS cloud services division competing with Google Cloud. Though Amazon’s sales may be stagnant, branching out into cloud computing paid off for Amazon’s Q1 earnings.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Sell
Buy
Updated
Change

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
China 300
-
-
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.