Amazon shares climb as AI continues to drive earnings
There’s been another good set of numbers out from Amazon which reported earnings and revenue that sailed past analysts' estimates.
Earnings per share were 94 cents versus forecasts of 58 cents, while revenue was $143.1 billion vs. $141.4 billion expected with advertising coming in at a better than estimated $12.1 billion. CEO Andy Jassy told analysts on the earnings call that AI represents an opportunity worth "tens of billions" for Amazon's cloud business, Amazon Web Services.
(AI Video Transcript)
Amazon's Q3 earnings
Amazon, the online retail giant, recently announced its earnings for the third quarter, and the results were better than expected. This news caused a surge in Amazon's stock in after-hours trading. The company's earnings per share were 94 cents, which exceeded the prediction of 58 cents. Furthermore, its revenue reached $143.1 billion, slightly higher than the estimated $141.4 billion.
Amazon Web Services
One interesting aspect of Amazon's business is its Amazon Web Services, which generated $23.1 billion in revenue. Although this figure was slightly below what experts had forecast, it is still a significant amount of money. To put it into perspective, think of Amazon Web Services as a separate company that made $23.1 billion in just three months.
Amazon's stock
Amazon's strong performance in the third quarter has led the company to predict even more growth in the fourth quarter. They expect sales between $160 billion and $167 billion, which is a positive sign for the company's overall trajectory. However, it is important to note that the gains in Amazon's stock were not as big as the losses it experienced the previous day due to concerns about the advertising revenue outlook for other companies like Alphabet and Snap.
Despite this, the rise in Amazon's stock during after-hours trading is predicted to have a positive impact when the stock market opens on Wall Street. Investors who have bought Amazon shares may see their investment grow even more. It's always exciting to see a company like Amazon perform well in the market, as it serves as a strong indicator of its success and potential.
Overall, Amazon's earnings report showcases the company's continued growth and dominance in the online retail industry. With stro
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