Amazon cost cuts drive operating margin into double digits for first time

CNBC April 30, 2024
Annie Palmer, Ari Levy

Key Points

– Amazon’s operating margin jumped past 10%, topping a prior high of 8.2% in 2021.

– The company is simultaneously cutting costs and generating revenue growth in higher-margin businesses.

– Revenue in Amazon Web Services and the advertising division topped estimates.

For most of its 27 years as a public company, Amazon investors have been asked to sacrifice profit for growth. That’s no longer necessary.

In its first-quarter earnings report on Tuesday, Amazon’s operating margin reached double digits for the first time on record. The company’s margin climbed to 10.7% in the period, up from 7.8% in the fourth quarter and topping a previous high of 8.2% in the first quarter of 2021.

While overall revenue growth has...

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