Benzinga - by Anusuya Lahiri, Benzinga Editor.
Amazon.Com, Inc (NASDAQ:AMZN) stock is trading lower amid reports of leadership change in its cloud unit Amazon Web Services (AWS).
Matt Garman will succeed Amazon Web Services CEO Adam Selipsky, effective June 3, Bloomberg reports.
Garman is the Amazon cloud unit's leading sales and marketing executive.
Selipsky led AWS since 2021. The cloud unit accounts for most of Amazon's profit.
In April, AWS initiated global job cuts involving several hundred positions in Sales, Marketing, Global Services, and Stores Tech as it looked to pivot toward digital self-service training and programs.
Amazon cut hundreds of positions in 2024 and around 27,000 in 2022 and 2023.
Amazon reported first-quarter net sales growth of 13% year-over-year to $143.3 billion, beating the Street consensus estimate of $142.5 billion. EPS of $0.98 beat the Street consensus estimate of $0.82.
The company said AWS became a $100-billion annual revenue run rate business.
AWS dominated the global cloud service market in the fourth quarter, bagging 31% of total cloud spending.
Analysts flagged Amazon's dominant position in generative AI, foreseeing benefits from its AI chip development and diverse large language model offerings.
Amazon.com stock gained over 66% in the last 12 months. Investors can gain exposure to the stock via SPDR Select Sector Fund – Consumer Discretionary (NYSE:XLY) and Fidelity MSCI Consumer Discretionary Index ETF (NYSE:FDIS).
Price Action: AMZN shares traded lower by 0.84% at $185.00 at the last check Tuesday.
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