Amazon’s third-quarter report was a decisive victory for the tech giant, which beat analyst expectations on all major metrics. The company reported $1.95 earnings per share (vs. $1.58 expected) and $180.17bn in revenue (vs. $177.82bn expected), causing its stock to rise 9%.
The star performer was Amazon Web Services (AWS), which brought in $33bn in revenue, topping the $32.42bn estimate. This 20% year-over-year growth is the division’s fastest since 2022.
This success is notable as it follows a major AWS outage that affected millions. The financial results show that the technical failure had no discernible impact on its revenue stream, highlighting the “stickiness” of its cloud services.
The company is also pushing to close the gap in the AI race. The earnings call featured mentions of the Rufus AI shopping tool and the expansion of Zoox autonomous vehicle testing.
In other news, Amazon is cutting 14,000 corporate jobs to “strengthen” its organization. CEO Andy Jassy told investors the move was driven by a desire for a “startup-style” culture, not by financials or AI.