On Thursday, Amazon beat analysts’ financial estimates for its first quarter; however, its revenue declined.
Its stock price increased by 4.61% to $109.82 per share on April 27. Meanwhile, it is expected to drop by -2.08% to $107.54 apiece in the upcoming session.
The company’s earnings per share reached $0.31, beating experts’ $0.21 forecast. Therefore, the data is better than the previous $0.03 figures.
On the other hand, the revenue of Amazon dropped to $127.40 billion, still exceeding the $124.55 billion consensus. As a result, it is lower than the last $149.20 billion reading.
Moreover, sales in its other segment, Amazon Web Services, improved by 16.00% to $21.35 billion in the first quarter. It is above the projected $21.22 billion. Nonetheless, it is still considered a plunge from the 20.00% growth from the last quarter.
According to its CEO, Andy Jassy, its advertising business keeps delivering strong growth. Mainly, it is caused by their continuous machine learning investments, helping customers gain relevant information whenever they engage with them. This, in turn, delivers excellent results for brands.
Furthermore, Amazon is cutting off around 27,000 staff, the most significant job cut in its 29-year run. Earlier this week, some of its Amazon Web Services and human resources workforce were let go.
Halo Division Shut Down by Amazon
The e-commerce giant Amazon confirmed its decision to wind down its health-focused Halo division. It will take effect from July 31, 2023.
Starting on August 1, 2023, all Amazon Halo devices, including the Halo application, will be inaccessible. Also, Halo health data would be deleted on the same day.
However, the company said it would process a full refund for customers who purchased in the past 12 months.
Unused prepaid Halo subscription fees would also be refunded to customers’ original payment method. If they have a paid subscription, they will no longer be charged a monthly subscription fee today. Moreover, no additional steps are required to be made.