Amazon stocks experienced a roller coaster ride after the company reported its first quarter earnings that beat expectations. Initially, shares surged, but the optimism was short-lived as concerns arose about the company’s cloud computing growth. Amazon CFO admitted that Amazon Web Services’ growth rates were declining even further. As a result, the company’s stock gave up its gains and slipped in extended trading.
Investors have been closely monitoring Amazon’s performance as it is one of the largest and most valuable companies worldwide. Despite the recent hiccups with its stocks, there are still smart reasons to buy Amazon’s stocks. It is said that the company is showing some signs of life after a brutal 2022.
The Motley Fool reported that Amazon’s earnings created massive volatility after hours. The details of the earnings report caused stock shocks and massive fluctuations, leaving investors jittery.
On a positive note, Amazon’s latest quarterly financial results were reported after the bell and impressed investors, causing shares to jump in after-hours trading. Amazon’s stocks also gained on Wednesday in sympathy with Microsoft Corp and Alphabet Inc’s stocks.
Although Amazon’s stock experienced some turbulence, it remains one of the most valuable companies, with a market capitalization of more than $1.6 trillion. Despite a questionable outlook for one of its major revenue streams, Amazon’s diversified and expanding business models should continue to be an attractive investment option for investors.
