The company expects a significant rise in operating profits in the current quarter (the holiday quarter), and given the crucial holiday quarter, it expects… Amazon Net sales of between $181.5 billion and $188.5 billion, representing growth of seven to 11 percent compared to the same period in 2023.
The stock, which was hit hard in regular trading, increased by about 6 percent in after-hours trading on the New York Stock Exchange.
In the AWS cloud computing division, AWS, operating profits increased by about 50 percent, to reach $10.4 billion, making this sector one of the highest-income sectors for the Amazon-based company. Seattle.
Revenues in this sector increased by about a fifth in the third quarter, compared to what they were in the previous year, reaching $27.5 billion. Retail and advertising revenues also saw significant increases.
At the company level, revenues increased by 11 percent, reaching $159 billion.
“Amazon remains a major beneficiary of the American consumer’s shift to online shopping, and Prime Day has helped boost revenues for retail and advertising companies,” said Sky Canaves, principal analyst at eMarketer.
“The problem for investors is that Amazon has had to increase AI-related spending so that AWS can keep up with demand and defend its market share,” Kanaves added.