Amazon Reports Third Quarter Earnings and Cloud Revenue Growth
· Business · TechCrunch, Barron's
Amazon reported its third-quarter earnings on Thursday, missing analysts' expectations for both total revenue and earnings per share. Net sales increased 12 percent to $201.9 billion, falling slightly short of the $202.2 billion expected by FactSet, while fully diluted earnings per share reached $1.89 against a projected $1.97. However, the company's cloud computing unit, Amazon Web Services, posted strong results with sales surging 39 percent year over year to $45.98 billion and operating income climbing to $17.8 billion. Amazon revealed that its free cash flow fell to a negative $42.4 billion over the trailing 12 months, driven largely by heavy capital expenditures in artificial intelligence. The company reiterated its expectation to end the fiscal year with cash capital expenditures of about $220 billion.
Why it matters
Massive capital spending on artificial intelligence by major tech firms like Amazon reshapes corporate balance sheets and signals long-term infrastructure investment trends.
Read the original report — TechCrunch
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