Amazon’s Cloud Gains and New Logistics Offering Underscore a Long-Term Pivot

Overview

• Amazon, which beat first-quarter estimates on April 29, posted $181.5 billion in revenue, $2.78 in EPS, and 28% AWS growth to $37.6 billion with a $364 billion backlog that locks in multi-year cloud spending.
• The company projected second-quarter sales of $194 billion to $199 billion and operating income of $20 billion to $24 billion, above prior consensus.
• Following the results, Goldman Sachs, Baird, Raymond James, and Bank of America raised price targets, pointing to accelerating AWS demand tied to generative AI.
• Amazon introduced Amazon Supply Chain Services to open its logistics network to outside firms, giving access to freight, distribution, fulfillment, and parcel shipping built for its own operations.
• CEO Andy Jassy highlighted new AI deals with OpenAI and Anthropic, a chips business over a $20 billion run rate, and advertising above $70 billion, signaling a shift toward higher-margin infrastructure and services.