Amazon (AMZN), the globally renowned online marketplace, unveiled its latest financial figures, presenting an impressive uptick in both revenue and profit, outpacing analysts' predictions. This favorable financial momentum primarily hails from a surge in web sales from its core retail division, coupled with meticulous cost-saving endeavors. Despite the cloud division's sales growth slightly missing the mark, CEO Andy Jassy showcased an optimistic outlook. He highlighted the unit's stabilization and a slate of new deals, which were instrumental in propelling the shares upwards by approximately 3.5% during post-market trading.
Under Jassy's strategic leadership, Amazon has shifted its focus towards lucrative domains, transitioning from its foundational e-commerce operations to more profitable ventures, encompassing advertising, logistics for third-party merchants, and provision of cloud resources to corporate entities. Insights from Zak Stambor, an analyst from Insider Intelligence, echoed this sentiment, noting the company's renewed concentration on high-margin online sales and auxiliary services. Amazon Web Services (AWS), the cloud segment, recorded a 12% surge in sales, amounting to $23.1 billion, alongside an operating income that exceeded expectations by a staggering $1.3 billion.
The third quarter presented a 13% growth in revenue, reaching $143.1 billion, surpassing the anticipated $141.6 billion, as per Bloomberg's compiled data. This period also witnessed a significant rise in operating income, registering $11.2 billion compared to the previous year's $2.5 billion. The company's foundational online store segment also delivered commendable figures, with a 7% spike from the prior year, culminating in $57.3 billion. This encompasses the revenue from the widely anticipated Prime Day event. Moreover, advertising revenues saw a notable jump of 26%, settling at $12 billion.
Amazon's projections for the concluding quarter of the year estimate revenues between $160 billion and $167 billion, juxtaposed with the consensus estimate of $166.6 billion. Brian Olsavsky, Amazon's CFO, offered a cautious stance regarding consumer spending patterns, emphasizing their propensity for deals. However, Stambor remains bullish, underscoring the success of Amazon's promotional events as a significant tailwind heading into the festive season.
