Amazon Earnings Surge: Amazon presented its quarterly financial report, showing strong performance that exceeded forecasts. Compared to last year, quarterly revenue rose 13% to $143.1 billion. Quarterly profits exceeded experts’ expectations at $9.9 billion. AWS, a constant profit-driver, saw 12% quarterly revenue growth to $23.1 billion. The advertising segment also excelled, with revenue reaching $12.1 billion, a substantial 26% rise year-over-year.
Notably, North America demonstrated strong sales growth, surging by 11% to $87.9 billion. Amazon’s stock briefly jumped more than 3% in after-hours trading following the earnings release. This performance is part of a trend that has seen Amazon’s stock rise by around 40% in 2023, surpassing the gains of the S&P 500 and the tech-heavy Nasdaq index.
This year’s robust sales growth contrasts with the challenging year Amazon faced in 2022, characterized by extensive cost-cutting measures.
Also Read: Amazon Surprising Earnings Report: CEO Jassys Bold Moves Transforming AWS Growth
The company announced job cuts, affecting 9,000 positions in March, following 18,000 layoffs announced in January. These moves were in response to fluctuating demand during the pandemic, with surges followed by declines as restrictions eased and economic concerns emerged.
In 2023, under CEO Andy Jassy‘s leadership, Amazon has focused on cost reduction and key growth areas, resulting in steady revenue growth. Despite these positive financial results, Amazon is grappling with a landmark monopoly case, with the Federal Trade Commission and 17 states suing the company over allegations of abusing its economic dominance and hindering fair competition. Amazon has vehemently denied the claims, asserting they are erroneous.
Amazon’s earnings report aligns with strong quarterly sales growth reported by other tech giants like Microsoft, Google, and Meta, signaling the ongoing resilience of Big Tech companies and defying concerns of imminent economic weakness.
Our Reader’s Queries
Why is Amazon stock surging?
Amazon’s Q3 earnings report showed a 13% year-over-year increase in revenue, reaching an impressive $143.1 billion. As a result, the company’s stock saw a significant boost, climbing by almost 8% in trading. This positive news is a testament to Amazon’s continued success and growth in the market.
Will Amazon hit $1,000 again?
Experts predict that Amazon’s stock will continue to outperform the market in the coming years, with projections nearing $500 by the end of 2023. Despite the current downturn, many estimates suggest that Amazon’s success will persist. In fact, I anticipate that Amazon’s stock will surpass $1,000 per share by 2025 or even sooner.
What is Amazon Q4 earnings 2023?
The projected EPS* for the fiscal quarter ending Dec 2023 has remained steady at 0.79 over the past week. However, there has been a slight increase from 0.78 to 0.79 (1.28%) over the past month. It’s worth noting that no one has raised or lowered their forecast during this time.
What is Amazon Q4 earning predictions?
The management team has projected that the Q4 revenue will fall between $160 billion to $167 billion. This forecast aligns with the analysts’ predictions, who also anticipate the revenue to be in the same range. Additionally, the EPS for Q4 is expected to be $0.79. For the entire year, analysts are optimistic about a net profit of $2.68 per share, which is a significant improvement from the loss of $0.27 per share in 2022.