Amazon posted its third quarter revenue rose beating street estimates. The tech giant revenue increased by 13 per cent to USD 143.1 billion, which is USD 2 billion higher than analyst expectations of USD 141 billion, Reuters reported
Amazon’s net income rose to USD 9.9 billion in the third quarter from USD 2.87 billion in the previous year.
The US tech giant forecasts current-quarter revenue in the range of USD 160 billion and USD 167 billion.
Amazon CEO Andy Jassy said the company had a strong quarter as its advertising business grew robustly and it improved its delivery speed.
“We had a strong third quarter as our cost to serve and speed of delivery in our Stores business took another step forward,” said Amazon chief executive Andy Jassy, adding its ad business grew “robustly” and AWS cloud computing business “continued to stabilise.”
Amazon web services, the company’s key revenue contributor in Q3 earned USD 23.1 billion, which is less than analyst expectations.
The cloud unit’s operating income was at USD 6.98 billion, about USD 1.3 billion more than analysts’ expectations. AWS reported the highest operating margin since the first quarter of 2022.
According to media reports, Amazon said it will hire 2,50,000 full-time, part-time and seasonal employees in the US to handle shopping demand in the months ahead. It will also invest USD 1.3 billion to bump up the average hourly wage for delivery and fulfillment jobs to more than USD 20.50.
Amazon’s core ecommerce business witnessed growth in the third quarter, with sales increased by 7 per cent year-over-year (YoY) to USD 57.3 billion. The company’s advertising arm also performed strongly, with ad sales surging, the report stated.
