"The company was losing ground to its closest competitors in the cloud computing infrastructure market, while tariffs threatened the profits of merchants on its e-commerce platform as well as its financial results. However, recent developments have given the stock a positive jolt. While Amazon hasn't completely resolved all its issues, the stock climbed to an all-time high following a strong quarterly update and a key move in the cloud industry."
"All three of the company's core segments posted revenue growth in the double-digit percentages, but the market particularly honed in on Amazon Web Services (AWS), its cloud unit. AWS' sales jumped 20% year over year to $33 billion. That's still below the growth rate of some of its peers in the cloud industry. For instance, Alphabet's Google Cloud revenue soared 34% year over year in Q3, but its sales of $15.2 billion were less than half of AWS'."
Amazon's third-quarter sales rose 13% year over year to $180.2 billion, with all three core segments posting double-digit revenue growth. Amazon Web Services grew 20% to $33 billion, marking its fastest quarterly pace since 2022, while advertising revenue surged 22% to $17.7 billion. Net earnings per share increased to $1.95, about 36% higher than a year earlier. The core e-commerce business remains the largest but lower-margin revenue source, and tariffs and cloud competition continue to present risks as higher-margin businesses gain share.
Read at The Motley Fool
Unable to calculate read time
Collection
[
|
...
]