Amazon: The AI Bet Behind AWS Growth
Summary
- Amazon’s Q1 2025 net sales hit $155.7 billion, up 10% YoY, with AWS revenue climbing 17% to $29.3 billion.
- Free cash flow shrank nearly 50% YoY to $25.9 billion, mainly due to heavy CapEx on regional fulfillment and Project Kuiper.
- Prime delivery speeds reached record levels, while Amazon Ads grew 19% YoY to $13.9 billion, strengthening margin resiliency.
- AWS backlog rose 20% YoY to $189 billion, averaging 4.1-year contracts, securing durable AI growth amid supply constraints.
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