Amazon Reports Strong Third Quarter Growth Driven by AWS Amid Slowing E-commerce Momentum
Amazon (AMZN) reported a robust third quarter with total revenue increasing 12% year-over-year and operating income surging 61%. The company's performance was heavily bolstered by Amazon Web Services (AWS), which saw sales grow nearly 40% to $46 billion, driven largely by the massive demand for artificial intelligence development on its cloud platform. However, a significant slowdown was observed in Amazon's core e-commerce segment. Online store sales grew only 2% compared to previous quarters of double-digit growth, and third-party sales rose by 9%. While AWS is currently driving the company's valuation through AI integration, investors are closely monitoring the deceleration in retail as competitors like Walmart demonstrate stronger e-commerce expansion.
Topics: Amazon earnings Artificial Intelligence AWS growth E-commerce market share