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A Quick Look at Amazon’s Money Matters

Big Jumps in Revenue and Profit

Amazon just shared some pretty awesome news about how much money it made in the first three months of 2024. Their total sales hit $143.3 billion, which is 13% more than last year. Their profits really took off, climbing to $10.4 billion from just $3.17 billion the year before. These numbers are better than what most people on Wall Street thought Amazon would pull in, showing that the company is doing really well.

Delivered Amazon online order box next to laptop on a table

The Big Impact of Amazon Web Services

A lot of Amazon’s money comes from its cloud service called Amazon Web Services, or AWS for short. AWS made $25 billion, which is up 17% from last year. It now makes up 62% of Amazon’s total profit, proving it’s a big deal in Amazon’s financial world. With Amazon putting more into AI tech, AWS is likely to keep growing and making even more money.

What’s Driving Amazon’s Success?

Artificial Intelligence Is Key

Amazon has been mixing more artificial intelligence, or AI, into what it does, especially in AWS. This move has sparked new ideas and made things run smoother, helping Amazon’s bottom line. By doubling down on AI, Amazon not only makes AWS stronger but also stays ahead in the tech game.

Ads Are Bringing in the Bucks

Amazon’s also making more from ads, with its advertising business growing by 24% to $11.8 billion. By putting ads on Prime Video and other spots, Amazon has opened up new ways to make money. This is smart because it uses Amazon’s big reach to sell more ads.

Looking Ahead: More Growth and Investments

Spending More on the Future

Amazon is planning to spend a lot more on building up its tech and structures to keep up with high demand. They’re dropping $14 billion this quarter alone to improve things like data centers that support cloud computing.

Teaming Up for Better Tech

Amazon’s not slowing down. It’s investing $11 billion to set up more data centers in Indiana and working more with Nvidia, a big tech company. These moves are meant to beef up Amazon’s AI skills and improve how it serves customers all around the world.

Check out all the details about how Amazon is reaching new heights with smart investments in AI and advertising, and see why AWS is a major player in the company’s success and future plans.

cropped image of woman holding credit card and using laptop with amazon on screen

Frequently Asked Questions

What makes Amazon Web Services (AWS) so important to Amazon’s overall profit?

AWS is like the powerhouse behind a lot of Amazon’s earnings. It’s not just a side project; it brings in a huge chunk of the company’s profits—62%, to be exact. Because it’s all about cloud computing, which every company needs more of these days, AWS has become super crucial. With Amazon pouring money into AI to make AWS even better, it’s set to keep playing a big role in Amazon’s financial success.

How is Amazon using artificial intelligence to boost its business?

Amazon is really leaning into artificial intelligence (AI) to shake things up. By integrating AI into their services, especially AWS, Amazon is making their systems smarter and more efficient. This isn’t just about cool tech—it’s about creating tools that can handle more tasks, predict needs better, and provide slicker services, which in turn draws more customers and boosts Amazon’s income.

Why is Amazon investing heavily in advertising, and how does it affect their revenue?

Ads have turned into a goldmine for Amazon. They’ve expanded their ad business by 24% to $11.8 billion, mainly by adding advertisements to places like Prime Video. This strategy is smart because it taps into Amazon’s massive user base, turning every eyeball on their platforms into potential revenue. By diversifying where and how they advertise, Amazon is not just selling products; they’re also selling space and visibility to other brands, which pumps up their profits.

Sources The Guardian