Another day, another Big Tech earnings!! Amazon reports Q1 2023 results after market close today. Revenue was $127.36B vs. $124.7B expected. EPS was $0.31 vs. $0.2 expected. AWS revenue was $21.35B vs. $21.03B expected. Operating margin was 3.7% vs. 2.38% expected. AMZN 0.00 stock jumped after the report.
It was so interesting that so far all four Big Tech companies beat earnings expectations. I wonder how much of this is related to the AI boom? AWS is performing quite well this quarter with a 16% YoY revenue growth vs. 20% the previous quarter. Given the macro environment situation, this is pretty healthy growth. Amazon’s revenue growth is also mostly from the high margin service segment with 17% YoY increase vs. 1% in the product segment. I suppose it’s great that they are improving their margins by having more revenue coming from the service segment.
Overall, it’s a great season for Big Tech. Apple will report next Thursday. I wonder if they will follow the same path as the other four companies. They are more of a consumer product company than consumer/business service companies though. If anything, their reports will reflect the sentiment of the affluent consumers better in the current environment.