Key Points
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Amazon’s Q1 revenue reached $181.5 billion, with AWS revenue growing 28% to $37.6 billion, its fastest pace in 15 quarters.
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Alphabet also reported strong results, with Q1 revenue rising 22% to $109.9 billion; Google Cloud revenue jumped 63% to $20 billion.
On April 29, 2023, Amazon (NASDAQ: AMZN) and Alphabet (NASDAQ: GOOGL, GOOG) each reported robust first-quarter earnings, indicating strong demand for cloud services amid increased capital spending plans. Amazon’s AWS segment saw a significant surge, reaching a $14.2 billion operating income, driven by a backlog of $364 billion and a $200 billion capital spending plan through 2026. Meanwhile, Alphabet’s Google Cloud segment reported an operating income that tripled year-over-year to $6.6 billion, supported by a $460 billion backlog.
Both companies are leveraging the growing demand for AI infrastructure, with Amazon’s chips business surpassing a $20 billion annual run rate and Alphabet’s cloud operating margin rising to 32.9%. Both firms have had significant stock rallies, with Alphabet up about 22% year-to-date and Amazon reaching an all-time high in early May 2023.
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