We're raising our price target on Amazon after its all-around killer quarter

amazon shares jumped about 4% in after-hours trading after the company reported a stronger-than-expected first quarter. revenue hit $181.52 billion, up 17% year over year, beating the $177.3 billion consensus. gaap earnings per share came in at $2.78, well above the $1.64 estimate, though that figure included $16.8 billion in pre-tax gains from its anthropic investment. operating income rose 30% to $23.85 billion, also ahead of forecasts. aws growth accelerated to 28.4%, the fastest pace in 15 quarters, with revenue of $37.59 billion beating estimates. the aws backlog hit $364 billion, up from $244 billion last quarter, and that doesn't include the recently announced $100 billion-plus deal with anthropic. amazon's custom chip business hit a $20 billion annual revenue run rate, up from $10 billion last quarter. the company spent about $44.2 billion on capex in the quarter, slightly above the $43.95 billion estimate, and kept its $200 billion full-year guidance. for q2, amazon guided net sales of $194 billion to $199 billion, with the $196.5 billion midpoint beating the $188.96 billion consensus. operating income is expected between $20 billion and $24 billion. the company delivered its highest operating margin quarter across all segments in company history. analysts raised their price target to $300 from $250, maintaining a buy-equivalent rating.