Cyber trading over the web - Amazon witnesses major boost in revenue.
Amazon's retail and cloud businesses have been thriving in recent quarters, resulting in a 13% revenue increase in the latest financial period. The company reported a revenue of $143.3 billion (134.3 billion euros) after the American stock exchange closed. This figure surpassed analysts' predictions.
Within the cloud division, AWS, revenue jumped by 17% to reach $25 billion. The growing demand for computing power for AI-related applications has been a significant contributor to this growth, according to CEO Andy Jassy. He also pointed out the potential in creating new content using these AI services and the subsequent need to retrain them.
Other tech giants, like Microsoft and Google, are also benefiting from the AI boom in their respective cloud divisions. Microsoft has taken an early step into the AI business through a partnership with OpenAI, the developer of the popular chatbot, ChatGPT.
Although Amazon seems to be a little behind in the race for generative AI, they're making up for it by acquiring a stake in Anthropic, a competitor to OpenAI, and investing heavily in their cloud infrastructure to support AI applications. Previously, their AWS growth had slowed down.
After the impressive earnings report, Amazon's shares saw a temporary increase of more than 3% during after-hours trading but later settled at a 1.26% growth. The company anticipated sales between $144 billion and $149 billion for the current quarter, which fell short of analysts' projected average of approximately $150 billion.
North American sales hit $86.3 billion, with international sales amounting to almost $32 billion. The advertising revenue, which took off after the introduction of an advertising fee in Amazon's video streaming service, reached almost $12 billion, representing a 24% growth.
Furthermore, the company's consolidated net profit soared to $10.4 billion, surpassing the $3.2 billion recorded in the same quarter last year. AWS achieved an operating profit of $9.4 billion, compared to $5.1 billion in the previous year.
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Source: www.stern.de
