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Amazon exceeded Wall Street expectations in its third-quarter results, with notable growth in its cloud business and a substantial increase in advertising revenue. Following the report, Amazon’s stock rose 6% in pre-market trading.
In Q3, Amazon reported earnings per share (EPS) of $0.94 on revenue totaling $143.1 billion, outperforming estimates of $0.58 on revenue of $141.53 billion. Net sales in North America experienced an 11% increase, reaching $87.9 billion compared to the previous year.
Amazon Web Services (AWS), the company’s cloud business segment, demonstrated a revenue growth of 12%, amounting to $23.1 billion. While this slightly missed the estimated $23.2 billion, AWS’s operating income surged by 29% to $6.98 billion. Additionally, the advertising revenue saw a substantial boost, rising by 26% to $12.06 billion from the previous year.
Looking ahead to Q4, Amazon projected revenue from $160 billion to $167 billion, aligning with market expectations of $167.2 billion. The company also provided a guidance for operating income between $7.0 billion and $11.0 billion.
