Thursday’s solid Q3 earnings from Amazon. (NASDAQ:AMZN) showed healthy numbers across key segments. With CEO Andy Jassy’s emphasis on strategic expenditure and cost-cutting taking hold, the company exceeded analysts’ projections with an 11% revenue bump to $158.9 billion. Driven by fast expansion in its eCommerce, cloud, and advertising divisions, Amazon’s operating profit exceeded estimates of $14.7 billion, coming at $17.4 billion. With a 19% increase in revenue to $27.5 billion, Amazon Web Services (AWS), its cloud segment, exceeded the expected $9.12 billion and added $10.4 billion to operating income. Double-digit increases in online retail unit sales and advertising income, as well as AWS’s expansion, indicated a strong comeback following the difficulties of last year.
Early Friday, Amazon shares jumped 7.3% to $200, the most notable one-day increase since February. Jassy’s relentless infrastructure investment and efficiency approach has helped shares rise 23% this year. Mostly linked towards expanding its AI-driven data centers, CFO Brian Olsavsky revealed Amazon’s $75 billion proposed capital investment in 2024 plan. Jassy said, underlining Amazon’s long-term dedication to this growing industry, “Generative AI is a once-in-a-lifetime opportunity.” Analysts like Brian Yarbrough of Edward D. Jones expressed faith in Amazon’s strong strategic spending returns.
This article first appeared on GuruFocus.
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