Overview
- Amazon posted third-quarter net sales of $180.2 billion and earnings of $1.95 per share, topping analyst estimates.
- Amazon Web Services revenue rose about 20% to roughly $33 billion, its fastest growth since 2022 as AI spending strengthened.
- Operating income came in at $17.4 billion, missing forecasts after a $2.5 billion FTC settlement charge and $1.8 billion in severance costs.
- For the fourth quarter, Amazon projected net sales of $206 billion to $213 billion and operating income of $21 billion to $26 billion, below Street revenue expectations for the holiday period.
- Shares rose roughly 9% to 11% in after-hours trading as investors focused on cloud momentum, planned cuts of about 14,000 corporate jobs, and a 24% jump in advertising revenue to $17.7 billion.