Amazon (NASDAQ: AMZN) has a market cap of $2.2 trillion, having grown from an online bookseller to a tech conglomerate. In Q1, Amazon reported nearly $156 billion in overall revenue, a 9% increase from the previous year, driven largely by its cloud computing division, Amazon Web Services (AWS), which generated over $29 billion, accounting for 19% of total revenue and growing 17% year-over-year.
Operating income reached over $18 billion, with AWS contributing nearly $12 billion. Despite a free cash flow loss of $8 billion in Q1, Amazon’s net income increased by 64% to over $17 billion, largely due to improved other income shifting from a loss of $2.7 billion to a profit of the same amount. The company’s P/E ratio is currently 34, down from over 100 in July 2023, indicating a potential value stock.
Lastly, Amazon’s capital expenditures rose significantly to over $25 billion as it invests heavily in AI technology, positioning itself for future growth despite current financial pressures.
