Supported by its subsidiary AWS, the American online commerce giant achieved summer sales of 158.9 billion dollars while the market expected 157.2 billion.
Amazon largely exceeded market expectations in the third quarter with net profit of $15.3 billion, up more than 54% year-on-year, driven by its cloud subsidiary, AWS. The American e-commerce giant achieved summer sales of $158.9 billion, up 11% and also higher than market expectations of $157.2 billion, according to a press release published Thursday. “As we enter the holiday season, we are very excited about what we have in stock for our customers”warned Andy Jassy, boss of the group who forecasts sales of between 181.5 and 188.5 billion dollars for the next quarter.
The market immediately reacted well in trading after the close of Wall Street where the stock gained around 5% shortly after the announcement of the results. Investor expectations were focused on the specialized subsidiary of the world number one in remote computing, AWS. The cloud is in fact essential to the deployment of artificial intelligence (AI), particularly generative, and requires massive investments in dedicated, very energy-intensive data centers.
AWS revenue up 19%
The subsidiary, which could cross 100 billion in revenue for the first time this year, recorded a turnover of 27.5 billion dollars, up 19%, from which it derived 10.4 billion in operating profit. (key indicator of profitability), or almost two thirds of the group's total (17.4 billion). “Expectations have been reset to more realistic levels after the rare miss for Amazon in the second quarter”estimated before the publication Sky Canaves of Emarkerter.
Despite doubled quarterly profits thanks to the profitability of the cloud and AI, Amazon disappointed in its core business in the second quarter, with the market expecting solid performance in traditional activities to better digest the massive investments necessary for the deployment of AI. 'AI.
