Amazon’s advertising business is expanding faster than its main revenue generator, Amazon Web Services (AWS), marking yet another watershed event in the company’s history.
Amazon’s advertising products sales climbed 21% year on year to $9.5 billion in the first quarter of 2023, while AWS revenue increased 16% year on year to $21.4 billion. In constant currency terms, Amazon’s online sales climbed by 3% to $51.1 billion.
According to Amazon CEO Andy Jassy, despite economic uncertainties, people continue to spend, generating a vast audience for businesses to reach through Amazon’s e-commerce platform. However, enterprises continue to be hesitant to spend, and customers want to save money, contributing to the slower growth of AWS revenue.
Amazon’s shares initially rose by nearly 11% after the release of its first-quarter revenue results but turned around after the company released a lower-than-expected outlook for the second quarter.
The sources for this piece include an article in Axios.
