The retail, media and technology group Amazon
Group-wide, revenue climbed by 13 percent to $180 billion (156 billion euros), as Amazon announced on Thursday after the stock market closed.
Sales and earnings exceeded expectations
Growth was therefore higher than experts expected. The cloud business was particularly convincing. Amazon Web Services (AWS) sales climbed by a fifth to $33 billion compared to the previous year; this was the strongest growth since the end of 2022. The share price rose by double digits after the trading session; The paper is set to reach a record high on Friday.
The operating result, on the other hand, stagnated at $17.4 billion due to special charges for the settlement of a legal dispute with the FTC supervisory authority and the reduction of 14,000 jobs announced a few days ago. Without this, the operating result would have risen to $21.7 billion.
The bottom line is that profits increased by almost 39 percent to just over 21 billion dollars. Here the group benefited from joining the AI startup Anthropic PBC. This led to an extraordinary profit contribution of $9.5 billion before taxes.
Sales and earnings exceeded the experts’ expectations, as did the revenue forecast for the current fourth quarter. Amazon shares recently rose after trading by almost 14 percent to $253. If the paper were to rise so sharply in regular trading on Friday, it would surpass the previous record high of $242.52 from the beginning of February.
Amazon shares had only increased by almost two percent this year by the end of trading on Thursday. This means that the paper is lagging behind the development of other large tech stocks such as Nvidia
clearly behind.
This is partly because Amazon has not yet been able to trigger AI euphoria among investors. With AWS, the group is the largest provider of cloud offerings. However, growth has recently lagged behind that of the Microsoft cloud division, for example. By joining Anthropic PBC, Amazon wants to make up ground on the topic of artificial intelligence.