Amazon.com reported third-quarter earnings after market close today. They have exceeded market expectations, driven by strong performances in the company’s cloud computing and advertising divisions. The company announced earnings per share (EPS) of US$1.14, a 34% increase from the same period last year, surpassing the consensus estimate of US$1.12.
Total revenue reached US$157.3bn, marking a 9.7% year-over-year growth, closely aligning with analysts’ forecasts. Amazon Web Services (AWS), the company’s cloud computing arm, reported a 19% increase in revenue, totalling US$27.5bn. This growth underscores AWS’s dominance in the cloud market, bolstered by rising demand for AI-driven services.
The advertising segment also demonstrated momentum, with revenues climbing 18% to US$14.3bn, reflecting Amazon’s monetisation of its e-commerce platform and the increasing appeal of its advertising offerings.
For the fourth quarter, Amazon provided guidance projecting net sales between US$186bn and US$190bn, representing growth of 8% to 10% compared to the same period last year. The company anticipates operating income to range from US$17bn to US$19bn, reflecting ongoing investments in technology and logistics to support its expanding services.
Despite these positive results, there are some investor concerns about potential capacity constraints in cloud services, following similar issues reported by competitors. Additionally, increased expenditures on artificial intelligence and infrastructure have raised questions about future profit margins.