Amazon on Thursday reported third-quarter earnings and sales that beat Wall Street estimates, sending its shares up as much as 6% after the close of regular trading.
Net profits grew 55% to $15.328 billion, beating the average estimate of $12.2 billion, according to LSEG data.
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Amazon Web Services, the company’s cloud business, saw sales rise 19% to $27.5 billion, in line with estimates, according to LSEG data.
Three months ago, Amazon shares fell as much as 8% after executives warned that consumers were “cautious about their spending” and looking for cheaper options.
Amazon faces increasing competition from discount retailers such as Shein and Temu and is planning a competitor to sell a wide range of products at bargain prices shipped directly from China.
The increase in revenue of the main cloud services provider contrasts with the 33% increase of Microsoft’s Azure and the 35% increase of Google Cloud in the July-September quarter.
Amazon shares closed down 3.3% on Thursday ahead of the earnings report. Shares are up nearly 23% this year, outpacing a nearly 20% jump in the broader market.
Seattle-based Amazon said sales at its North American business rose 9% to $95.5 billion in the third quarter.
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Earnings were $1.43 per share, versus expectations of $1.14 per share.
Amazon’s revenue grew 11% to $158.877 billion in the third quarter ended in September, compared with analysts’ average estimate of $157.2 billion, according to data from LSEG.
In August, Amazon had said it expected revenue of between $154 billion and $158.5 billion for the third quarter.
With information from Reuters
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