by Akash Sriram and Jeffrey Dastin
(Reuters) – Amazon reported better-than-expected quarterly sales and revenue on Thursday, expressing optimism for its cloud computing business despite falling consumer spending and touting the effectiveness of its cost reduction plan.
The e-commerce giant’s stock rose 8% in post-close trading, continuing the gains recorded during the session.
Amid concerns over the economy, Amazon has embarked on a massive cost-cutting program, with chief executive Andy Jassy announcing further job cuts last month.
According to data released Thursday, the group recorded net sales of 127.36 billion dollars in the January-March period, beating the consensus.
He said he expects sales for the current quarter to be between $127 billion and $133 billion, while analysts had expected $129.83 billion.
The Amazon Web Services (AWS) division, longtime an important source of revenue, saw growth slow in the first quarter to 15.8% as companies cut spending amid fears of a recession.
Amazon reported net profit of $3.17 billion as of March 31, compared with a loss of $3.84 billion a year earlier.
(Report Akash Sriram and Jeffrey Dastin; Jean Terzian)
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