Amazon’s stock price jumped in extended trading on Thursday after the company reported better-than-expected earnings for the third quarter. Revenue also beat expectations, but growth in Amazon Web Services (AWS) missed slightly.
Key Highlights:
- Amazon’s earnings per share were $0.94 in the third quarter, beating analyst expectations of $0.58.
- Revenue was $143.08 billion, also beating expectations of $141.56 billion.
- AWS revenue grew 12% to $28.9 billion, but missed analyst expectations of $29.2 billion.
- Amazon’s e-commerce business grew 15% to $114.2 billion.
Amazon’s earnings per share were $0.94 in the third quarter, beating analyst expectations of $0.58. Revenue was $143.08 billion, also beating expectations of $141.56 billion.
AWS revenue grew 12% to $28.9 billion, but missed analyst expectations of $29.2 billion. Amazon’s e-commerce business grew 15% to $114.2 billion.
In a statement, Amazon CEO Andy Jassy said that the company was “very pleased” with its results in the third quarter. “We saw strong growth in both our retail and AWS businesses, and we’re excited about the momentum we have heading into the holiday season.”
AWS Growth Misses Slightly, But Still Solid:
AWS is Amazon’s most profitable business segment, and its growth is closely watched by investors. While AWS revenue missed expectations in the third quarter, 12% growth is still solid. And AWS remains the dominant player in the cloud computing market, with a market share of over 30%.
E-Commerce Business Continues to Grow:
Amazon’s e-commerce business also continued to grow in the third quarter, with revenue increasing 15%. This growth was driven by strong sales in North America and Europe. Amazon’s Prime subscription program also continued to grow, with over 200 million members worldwide.
Looking Ahead:
Amazon is facing a number of challenges in the near term, including rising inflation and supply chain disruptions. However, the company is well-positioned to navigate these challenges and continue to grow its business. Amazon has a strong track record of innovation, and it is investing heavily in new areas such as cloud computing and artificial intelligence.
Amazon reported better-than-expected earnings and revenue in the third quarter. AWS revenue missed expectations slightly, but 12% growth is still solid. Amazon’s e-commerce business grew 15%, driven by strong sales in North America and Europe. The company is facing a number of challenges in the near term, but it is well-positioned to navigate these challenges and continue to grow its business.
