Amazon on Tuesday expected second-quarter revenue to be weaker than Wall Street expectations as it expects spending from cost-sensitive companies on cloud computing services to be slow.
Amazon’s first-quarter sales rose 13% to $143.3 billion, above the average of $142.5 billion, according to LSEG data.
Amazon shares rose as much as 6% in after-hours trading after closing 3.3% lower in regular trading.
The company expects sales of $144 billion to $149 billion for the current quarter, which ends in June, compared to analysts’ consensus estimate of $150.07 billion, according to LSEG data.
Amazon Web Services (AWS), the largest cloud computing service, reported first-quarter sales of $25 billion, an increase of 17%, compared to the expected $24.53 billion.
In comparison, cloud computing sales for the January-March period increased by 31% for Microsoft and 28% for Alphabet.
Amazon bucked the trend of Big Tech announcing dividends after rivals Alphabet and Meta Platforms rolled out perks for investors.
The latter two announcements were welcomed by investors and pushed up the stock price.
Amazon and Tesla remain the only companies in the so-called Magnificent Seven that do not pay dividends.
