Amazon Q3 Results Highlight AWS Growth and E-commerce Operating Leverage
Amazon reported strong third-quarter results driven by significant acceleration in its cloud computing division, AWS. AWS revenue grew 39% year-over-year to $46 billion, surpassing analyst expectations and marking its fastest growth rate in nearly five years. This surge was supported by high demand for AI services like Bedrock and a massive increase in revenue commitments for custom chips such as Graviton and Trainium. The company's e-commerce segment also demonstrated improved efficiency, with North American operating income surging over 80% to $8.7 billion. While total revenue of $201.9 billion slightly missed consensus estimates and advertising growth decelerated to 12%, the underlying operating leverage in retail remains a key strength. Despite being viewed as a market laggard recently, Amazon's diversified growth across cloud and logistics presents a compelling long-term outlook.
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Topics: AWS revenue growth Cloud computing E-commerce operating leverage Q3 earnings report
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