"Amazon's e-commerce business, which was shaky for several quarters, has made a major comeback. Revenue at its core North American business rose to $106 billion from $96 billion in the same quarter a year ago. Operating income dipped slightly to $5 billion. Revenue in its cloud business, which is considered its growth engine, rose from $27 billion to $33 billion year over year."
"It took down the cloud capacity of well over 1,000 companies, as well as the backbones of several social media companies. It raised the issue of the vulnerability of AWS, either to internal mistakes in its architecture or outside attacks. The first is the pace at which AI will pay off. Skeptics wonder when companies can make money. Most AI use comes from free products."
Amazon's core North American e-commerce revenue recovered to $106 billion from $96 billion year over year, with operating income around $5 billion. AWS revenue grew to $33 billion from $27 billion, and AWS operating income rose from $4 billion to $5 billion, maintaining leading global cloud market share. AWS experienced a massive October outage that disrupted over 1,000 companies and several social media backbones, raising vulnerability concerns. Investors worry about the pace of AI monetization, noting many AI products are free and forecasts project OpenAI revenue near $13 billion this year with profitability not expected until 2030. Amazon plans significant AI spending.
Read at 24/7 Wall St.
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