Much to many analysts' surprise, Amazon’s third-quarter earnings and revenue exceeded analysts' estimates by $1.7 billion. Their advertising sector raked in $12.1 billion in the third quarter versus the $11.6 billion expected during that same time.
Amazon has been in cost-cutting mode for the past year and has laid off 27,000 employees since last fall. Amazon has continued to thrive as a corporation by axing some of its less profitable bets.
Their AWS growth stabilized, Advertising revenue grew, and overall operating income rose significantly.
The growing need for cloud infrastructure and generative AI puts Amazon in a prime position to increase its market share and balance sheet.