Amazon logo on the facade of one of their office buildings located in Silicon Valley
Amazon reported 3rd quarter operating income of $17.4 billion that blew past consensus estimate of $14.7 billion as well as its own guidance in the range of $11.5 to $15 billion. Revenues came in at $158.9 billion, slightly more than mean expectations of $157.2 billion.
The e-commerce giant also set expectations for 4th quarter revenues between $181.5 and $188.5 billion and operating income between $16 and $20 billion, both towards the higher end of analysts’ forecasts.
Amazon CEO Andy Jassy expressed confidence in its AI business and disclosed in an earnings call plans to spend $75 billion in capital expenditures this year and even more in 2025. Wall Street appeared to be more receptive to Amazon’s investment in AI than to Microsoft and Meta Platform’s AI plans revealed earlier this week.
Amazon is trading today at about $198 a share, up 32% year-to-date.
