US EditionAmazon Ads Business Jumps 24% From Prior Year to $17.7 Billion
Amazon's cloud division grew 20% to $33 billion in Q3 while advertising revenue rose 24%. The company agreed to a $2.5 billion FTC settlement over subscription cancellation practices.
- On Thursday, Amazon reported $180.2 billion in third-quarter revenue and $21.2 billion in profit, with Amazon Web Services generating $33 billion and growing 20% year-over-year.
- Facing AI-driven change, Amazon is cutting around 14,000 corporate jobs to streamline operations as internal Amazon documents reveal plans to automate up to 75% of work, with severance costs expected this quarter.
- Infrastructure spending included adding 3.8 gigawatts of power to AWS infrastructure last year, opening Project Rainier with 500,000 Trainium 2 chips, and $35.1 billion capital expenditure.
- Regulatory and market moves left Amazon with a $2.5 billion settlement after the Federal Trade Commission proved it misled customers, while advertising deals with Netflix, Spotify and SiriusXM boosted its ads business and shares rose as much as 14% in after-hours trading.
- Looking to Q4, Amazon projected total net sales of between $206 billion and $213 billion, while AWS maintains an annualized revenue run rate of $132 billion.
22 Articles
22 Articles
How to get a refund from Amazon's $1.5 billion FTC settlement
Amazon agreed to a whopping $2.5 billion settlement with the Federal Trade Commission (FTC) last week over allegedly "deceptive" practices in signing up users to its paid Amazon Prime subscription service.Out of that settlement, Amazon will pay a $1 billion civil penalty to the U.S. government. The other $1.5 billion? That's the Consumer Fund, and it's going to be used to refund Amazon Prime customers who were affected by these practices.Accordi…
Amazon shares soar as AI demand boosts cloud revenue — and results fire up CEO Andy Jassy
Amazon's cloud revenue rose at the fastest clip in nearly three years, helping the company forecast quarterly sales above estimates and driving its shares up 14% in after-market trading.
Amazon's huge AWS cloud growth and earnings growth drive stock surge
Matthias Balk/picture alliance via Getty ImagesAmazon's stock popped more than 13% on Thursday afternoon after the company reported huge growth in the third quarter, including in its cloud business, Amazon Web Services.CEO Andy Jassy said AWS was "growing at a pace we haven't seen since 2022." He also called out particularly strong demand for its AI offerings."We continue to see strong demand in AI and core infrastructure," Jassy said.The compan…
The world's largest e-commerce company, a pioneer in cloud computing, and at the forefront in the development of artificial intelligence (AI), Amazon, won $21,187 million during its third fiscal quarter, equivalent to 18,313 million euros, an increase of 38% over the same period of the previous year.
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