Amazon reports a really good third quarter 2023, reassuring i financial markets with revenues increasing by +13% and almost ten billion in profits. The e-commerce giant reported robust growth in online sales he was born in online advertising business. But the challenge to the other Silicon Valley giants is in the cloud sector and AI.
Amazon, third quarter 2023 growing: revenues at +13%
Despite theinflation and rising borrowing costs, the CFO Biran Olsavsky announces good results expects an increase in revenues between 7% and 12% in the fourth quarter. The CEO Andy Jassy stated, as reported by Repubblica: “We had a solid third quarter with AWS growth continuing to stabilize, our advertising revenues rising and operating profit and cash flow significantly increasing.”
Third quarter net income increased to 9.9 billion dollarso 94 cents per shareexceeding analysts’ expectations 58 cents per share. Revenues grew by 13%reaching 143.1 billion dollarswith sales growth of 11% in North America and the 16% in international sales.
The division Amazon Web Services (AWS) reported a revenue increase of 12,3%reaching 23.1 billion dollars, in line with market forecasts. However, the division’s operating profit jumps to 7 billionrespect to 5.4 billion of the same period of the previous year.
Amazon has also adopted a cost cuttingreducing its staff by 27,000 people. These results have received the approval of Wall Streetwith Amazon stocks gaining more than 4%.
A look at the future
Jassy emphasized the importance ofGenerative Artificial Intelligence as a “very substantial and gigantic” potential opportunity for the sector cloud of Amazon. It could generate “tens of billions in revenue.” He stressed the importance of developers investing in chips AI Trainium e Inference, property of Amazon. But competition from Google and Microsoft could make the difference.
For the fourth quarter, Amazon expects revenue in the range of 1670 and 170 billion dollars and an operating profit between 7 and 11 billion dollars.