Amazon recorded the strongest growth of its sales of cloud services per year

The Cloud’s Amazon Unit has registered the strongest sales growth in a year, a sign that the most profitable unit of retail stores is recovering from stagnation with companies resuming spending on technology projects. The shares of the company increased in the late trading after the market closed. The company said in a statement on Tuesday that the first quarter turnover increased by 13% to $ 143.3 billion, compared to average estimates of $ 142.6 billion. Amazon, based in Seattle, recorded $ 15.3 billion operating profit. Compared to the average expectations of analysts of about $ 11 billion, according to the data that Bloomberg collected. CEO Andy Jassi has worked over the past few years to reduce costs and focus on profitability in the central retail of “Amazon”, to lay off thousands of people and promote a more efficient warehouse network. Meanwhile, he supports significant investments in artificial intelligence services that Amazon expects to generate dozens of billions of rands in the coming years. Sales of “Amazon Web Services” reached $ 25 billion during the period ending March 31, raising 17% from the previous year. Analysts estimated ‘Amazon Web Service’ sales at $ 24.1 billion. “A mix of companies working to update their infrastructure and renew the attractiveness of the capabilities of artificial intelligence at Amazon Web Service is working to accelerate the growth rate (at an annual income rate now is $ 100 billion),” Jassi said in the statement. The growth of the sales of the cloud unit delayed a record low last year, as companies reduced their spending on technology and tried to lower the costs of computers inflated during the epidemic. An upcoming recovery that rely on investors to recover this year, especially after the strong results last week of “Microsoft” and “Google” of Alphabet, the most important competitors of “Amazon” in the field of computer energy rent and data storage. These are the first business results since “Amazon” video ads introduced to the video broadcasting service “Prime Video”, which created a new source of revenue. Advertising turnover increased by 24% to $ 11.8 billion. Amazon shares have risen prices by extra transactions by about 4% after the market closed to $ 175 in New York. The stock gain reaches 15% in 2024.