Amazon beats Q1 earnings with strong AWS growth but faces cash flow pressure from AI investments.

Amazon.com, Inc. reported strong Q1 earnings, driven by a 28% year-over-year revenue growth in its AWS cloud business. Despite this growth, the company experienced margin compression and significant free cash flow decline due to heavy investments in AI technology. Amazon's retail segment also showed impressive growth despite weak consumer sentiment. However, with a high valuation of 31 times forward earnings and ongoing cash burn, the analyst remains cautious on Amazon compared to peers like Microsoft and Meta Platforms.