Amazon.com Inc (NASDAQ:AMZN) stock fell 1.57% (As on April 30, 11:23:22 AM UTC-4, Source: Google Finance) after the company reported strong increases in profits and net sales during its fiscal first quarter, helped by surging growth in its prominent cloud computing unit. The e-commerce and technology company said that sales in its cloud computing unit were up 28% in the January-March period, the fastest increase in 15 quarters. Amazon Web Services had 24% sales growth in the fourth quarter, which followed the division’s 20% growth in the third quarter. The Seattle-based company also offered a bullish outlook for net sales in the current quarter, surpassing analysts’ estimates.

Moreover, Amazon announced what it called a “major expansion” of its partnership with ChatGPT maker OpenAI, a day after the artificial intelligence company said it was loosening its ties to longtime backer Microsoft. Last week, Anthropic agreed to commit more than $100 billion to Amazon’s AWS cloud platform over the next 10 years to train and run the artificial intelligence company’s Claude chatbot. The partnership will allow Anthropic to secure up to 5 gigawatts of Amazon’s Trainium chips to train and power their artificial intelligence models, Amazon said. Also last week, Amazon said that Meta, which owns Instagram, WhatsApp and Facebook, signed an agreement to power agentic AI on AWS’ Graviton chips. Like other retailers, however, Amazon is experiencing higher tariff costs because of President Donald Trump’s foreign trade policies. Rising shipping costs as the Iran war affects oil and fuel prices also could cut into the company’s e-commerce revenue. Amazon this month said it would impose a 3.5% fuel and logistics surcharge on some third-party sellers using its platform. The temporary charge was effective April 17 for many of the sellers that use Amazon’s fulfillment services. Meanwhile, Amazon has been speeding up order delivery times through a combination of robotics, AI technology and more efficient warehousing. A new ultra-fast service called Amazon Now offers deliveries of orders from a selection of thousands of items in 30 minutes or less.

AMZN in the first quarter of FY 26 has reported the adjusted earnings per share of $2.78, beating the analysts’ estimates for the adjusted earnings per share of $1.63. The company had reported the adjusted revenue growth of 17 percent to $181.5 billion in the first quarter of FY 26, beating the analysts’ estimates for revenue of $177.28 billion, according to analysts surveyed by FactSet.