Amazon(US:AMZN) 智通财经网·2025-05-06 12:33Core Insights - Amazon reported strong performance in AWS for FY25Q1, with operating profit reaching $11.5 billion and a profit margin nearing 40% [1] - The company plans to increase capacity in the second half of the year to meet growing demand, particularly in AI services [1][3] - AWS backlog orders stood at $189 billion, reflecting a year-over-year growth of approximately 20% [1][16] AWS Performance - AWS's operating profit margin is attributed to robust growth and continuous investment in innovation and technology [1][10] - The company is focusing on maximizing power usage efficiency in existing data centers, which helps reduce costs and recycles power for new workloads [1][10] - The annualized revenue from AI business has reached several billion dollars, growing at a triple-digit percentage year-over-year [3] Capital Expenditure - Cash capital expenditure for the first quarter was $24.3 billion, primarily to support the growing demand for technology infrastructure related to AI services [1] - Investments are increasingly directed towards custom chips like Trainium and supporting technology infrastructure for both North American and international operations [1] Retail Business and Tariffs - Company executives expressed uncertainty regarding future tariff levels and their timing, but noted no current signs of demand weakening [2][4] - Some categories have seen increased purchasing, possibly indicating consumer stockpiling ahead of potential tariff impacts [2] Strategic Focus - The company emphasizes maintaining low prices and a wide selection of products as a core strategy, especially in light of potential tariff increases [4][5] - The diversity of sellers on the platform provides opportunities for some to capture market share without passing on tariff costs to consumers [5] Supply Chain and AI Demand - Supply chain issues are expected to improve over the coming months, which will help alleviate capacity constraints [3] - The company is actively introducing more GPU instances to support the growing demand for AI workloads [3] Revenue Guidance and Cost Considerations - The company anticipates fluctuations in revenue due to various factors, including sales cycles and competition [7][9] - Historical trends indicate that stock-based compensation typically increases in the second quarter, impacting overall cost structure [6] Migration to Cloud - There is a renewed focus among enterprises on migrating workloads to the cloud, driven by the rise of AI and the need for innovation [17] - The average remaining duration of backlog orders is 4.1 years, indicating a long-term commitment to cloud migration [16]