Amazon shares lose gains
Amazon (AMZN) released first-quarter financial results that surpassed expectations. At first, the stocks were up, but when cautious statements were made regarding the possibility of a break in operations at the Amazon Web Services cloud system, the stocks dropped in the trading market.
At the Amazon earnings call, the Chief Financial Officer informed shareholders that Amazon Web Services (AWS) customers are still striving to reduce expenses.
Amazon shares retreated about 2%.
Revenue at Amazon’s AWS unit advanced 16% in the first quarter, down from 37% year-over-year growth in the same quarter last year.
The company’s efforts to rein in costs are expected to be a central focus for the company’s earnings.
Much of the initial excitement in Amazon’s quarter can be seen in the gains that have returned to some parts of the business.
In its North American retail operations, the company returned to making money. At this time last year, the segment was operating at a loss of more than $1.50 billion in the three months to March 2022.
European stocks off lows
European stocks were lower in the session on Friday as traders digested fresh economic reports and more corporate earnings.
After being lower for most of the session, the pan-European Stoxx 600 index retreated 0.2%. Banks lost Thursday’s positive gains and fell 1.72%, while utilities slipped 0.9%. Financial services led to marginal gains with a 0.75% gain.
The Eurozone economy advanced by 0.14% in the year’s first quarter.
Nerves in the banking sector were somewhat revived by regional US bank First Republic, which is looking for a way to recover after its shares fell after it lost about 40% of its deposits in the first quarter.
British bank NatWest’s results showed a 37.25% year-on-year rise in revenue to £1.037 billion.
Mercedes-Benz said annual revenue fell but still beat estimates. The company raised its van sales outlook, saying vehicle sales will be higher under guidance.