Amazon Q1 2023 Earnings Update

Summary:

  • For the first time in its history, AWS QoQ sales declined.
  • AWS’ numbers now make Azure’s numbers look even more impressive than it already was.
  • Alexa has a couple of years left to figure out a viable business model before facing severe cut.
  • While headline figures still don’t seem encouraging, I am personally quite glad about the progress made at retail.
  • Amazon continues to buck the broader advertising trend.

Amazon fulfillment center building in Las Vegas

4kodiak/iStock Unreleased via Getty Images

An Analyst asked a legitimate question to Amazon (NASDAQ:AMZN) management:

“Does the company ever think about breaking out all the big investments so that we have more clarity on the retail margin structure?”

Source:

Source: Company Filings, MBI Deep Dives, Daloopa

Source: Company Filings, MBI Deep Dives, Daloopa

Source: Company Filings, MBI Deep Dives, Daloopa

Source: Company Filings, MBI Deep Dives, Daloopa

What, however, spooked investors a bit was the exit growth rate in April:

Source: Company Filings, MBI Deep Dives, Daloopa

Source: Company Filings, MBI Deep Dives, Daloopa

It’s not just Azure; Google (GOOG, GOOGL) Cloud’s numbers also look pretty good now. One caveat is Google Cloud includes Google Workspace, and Alphabet doesn’t disclose GCP numbers.
Source: Company Filings, MBI Deep Dives, Daloopa

Source: Company Filings, MBI Deep Dives, Daloopa

Source: Company Filings, MBI Deep Dives, Daloopa

Source: Company Filings, MBI Deep Dives, Daloopa

Source: Company Filings, MBI Deep Dives, Daloopa

Source: Company Filings, MBI Deep Dives, Daloopa

Source: Company Filings, MBI Deep Dives, Daloopa

Source: Company Filings, MBI Deep Dives, Daloopa

Amazon operating margin

Amazon retail trends

Source: Q1 2023 Earnings Call
Source: Company Filings, MBI Deep Dives, Daloopa

Source: Company Filings, MBI Deep Dives, Daloopa



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