Amazon (NASDAQ: AMZN) reported a 10% sales growth in Q1 2024, excluding currency fluctuations, driven by a 17% revenue increase from Amazon Web Services (AWS). Despite this growth, the stock is down about 3% year-to-date.
The company plans significant investments, including over $5 billion in Taiwan for AWS infrastructure and $20 billion in Pennsylvania to advance AI innovation. These investments are expected to enhance future growth, even as free cash flow (FCF) has declined by almost 50% year-over-year on a trailing-12-month basis.
Amazon’s revenue per employee increased to $414, up from $375 in 2023, indicating improved efficiency. The company’s AI investments are positioned to accelerate growth and may lead to a recovery in stock performance in the coming years.
