e-commerce giant Amazon Inc. shares rose more than 6 percent on Friday, Nov. 1 after the company reported stronger-than-expected earnings in its third quarter. Result,
Amazon.com Inc. Shares of Inc. rose 6.30 percent to $198.12 per share as of 1:50 p.m. (EDT) on Friday, compared to its previous close of $186.40 on Thursday.
The company’s revenue rose 11 percent year-on-year to $158.9 billion in the quarter ended Sept. 30. According to the report of news agency AFP, the net profit stood at $ 15.3 billion.
Amazon Web Services (AWSAccording to the report, the cloud computing division continued its solid performance with sales of $27.5 billion, an increase of 19 percent year-on-year.
Strong cloud performance comes amid increasing competition for AI-related services Microsoft And Google. Like its competitors, WS has invested heavily in artificial intelligence, building data centers and the computing capacity needed to deliver AI to cloud customers, according to the report.
Amazon’s international segment reported an operating profit of $1.3 billion, compared to a slight loss in the same quarter last year. According to the agency report, North American operations saw improvement and operating profit increased to $5.7 billion, compared to $4.3 billion year-on-year.
The company also registered an increase of 19 percent in advertising. sales According to the report, since businesses account for the majority of the revenue on the platform.
Amazon Chief Executive Officer Andy Jassy highlighted the success of Prime’s Big Deal Days and the strong performance of the new Kindle lineup, saying, “As we approach the holiday season, we’re excited about what we have in store for customers.” ,excited about it.” According to the agency report.
Expansion Plans and Forecast
Amazon’s Expansion Amazon Pharmacy plans to roll out its Amazon Pharmacy same-day delivery service to nearly half of the US, according to the report, indicating a continued focus on healthcare services despite some skepticism by investors in the sector.
According to the report, the company has raised its revenue outlook for the coming quarter by 7 percent to 11 percent, between $181.5 billion and $188.5 billion, compared to the same period last year.
“Amazon remains the primary beneficiary of US consumers’ shift to online shopping and a healthy Prime Day helped drive revenue.” retail and advertising businesses,” Skye Canaves, principal analyst at eMarketer, told the agency.
“The implication for investors is that Amazon has had to increase AI-related spending for AWS to keep up with demand and protect its market share,” Canaves said, according to the report.
But the giant is “relatively well-positioned as it continues to build (cloud) capacity and faces fewer headwinds than its rivals”. The good results come a day after Microsoft and Meta failed to impress investors, causing their shares to fall sharply, even though earnings beat expectations, according to the report.
