Thursday, April 27, 2023

"Amazon earnings preview: Analysts watching cloud growth, impact of layoffs" (AMZN)

We usually don't do "earnings previews" because a) the reality of the release makes the preview obsolete in a matter of hours to days and b) because the previewers don't usually bring any special insight to the story.

The relationship between GeekWire and Amazon is a bit different.

From Seattle's own, GeekWire, April 27:

In-depth Amazon coverage from the tech giant’s hometown, including e-commerce, AWS, Amazon Prime, Alexa, logistics, devices, and more. [also covering Redmond]

Amazon will report its first quarter earnings on Thursday. Here’s what to watch.

Cloud growth: Amazon Web Services has long been a key profit driver but is facing slowing growth amid the broader tech spending slowdown and other inflationary pressures. AWS revenue grew 20% year-over-year in the fourth quarter, compared to 40% growth in the year-ago period. “It is now widely understood and expected that AWS is likely to show significant deceleration in Q2 in particular,” RBC wrote in a report last month.

Layoffs impact: Amazon in January announced a 18,000-person layoff, the largest in the Seattle company’s history, and in March announced an additional 9,000 layoffs. That brought the total to 27,000 job cuts, about 8% of Amazon’s corporate workforce, which previously numbered around 350,000 people....

....MUCH MORE

Related at GeekWire, April 26:

Amazon’s Halo disappears: Tech giant discontinues health devices and service, promises refunds