US retailer Amazon’s third-quarter profit rose to US$9.9bn from US$2.9bn a year ago. Its online retail and cloud division both thrived.
Above analysts’ expectations
Revenue was up 13 percent year-on-year to 143.1 billion euros, compared with analysts’ estimates of $141.41 billion in a survey by LSEG. Sales were boosted by marketing promotions. The summer shopping event known as Prime Day saw record sales, according to the firm.
The firm’s cloud division, AWS, which has long been a major source of growth for the company, is doing well. But it has seen growth slow in recent quarters and its costs have risen due to its artificial intelligence (AI) goals. The division’s revenue rose 12 percent to $23.1 billion.
Pre-Christmas period
The company added that it expects strong revenue and profit growth in the fourth quarter due to the pre-Christmas period, accelerating shipments, and improved prospects for its cloud division. At the same time, however, it warned that consumers remain cautious when spending.
Amazon faces a number of challenges in its business as it seeks to maintain its position as the world’s largest cloud services provider and online retailer. It is also strengthening its cloud business and investing in artificial intelligence to attract user interest. It has also reorganized its delivery network to bring goods closer to buyers, allowing the company to process orders faster and cheaper. But at the same time, it faces a number of challenges, such as tight household and business budgets. The US Federal Trade Commission then accused the firm of monopolistic behavior in September, a charge the firm denies.
Source Czech Press Office
