Amazon’s Profit Triples as Sales Show Resilience
Online shopping giant has looked to rebound after post-pandemic slowdown
Amazon.com said profit tripled to nearly $10 billion from July to September as strong sales in its cloud-computing, advertising, and retail units helped the company continue its rebound from post-pandemic lows.
Tweet on Amazon’s profit sales
@amazon profit tripled to nearly $10 billion from July to September as strong sales in its cloud-computing, advertising, and retail units helped the company continue its rebound from post-pandemic lows.#amazon #cloud #tech #shares pic.twitter.com/N8hPZdILKT
— The_Journalbiz (@the_journalbiz) October 30, 2023
Bloomberg Chart
Chief Executive Andy Jassy said the company would reap tens of billions of dollars in revenue in the next several years as customers turn to generative AI opportunities available within its cloud-computing business, known as Amazon Web Services, or AWS. Business customers are likely to be less cautious with their spending, he said.
- The company’s revenue increased by 13% to $143.1 billion for its third quarter, beating Wall Street expectations.
Profit was $9.9 billion, more than triple the result from the same period last year. Amazon signaled net sales would be between $160 billion to $167 billion in its fourth quarter. Its shares rose by more than 5% in after-hours trading Thursday.
Amazon has been trying to engineer a rebound in its core e-commerce business following a slowdown after pandemic-induced heights.
The company has reined in costs across its North America unit, slashing roughly 27,000 corporate jobs and streamlining its operations following a cost-cutting review led by Jassy. It has also said it saved costs through an overhaul of its delivery operations meant to place packages closer to customers.
