Amazon's latest earnings report exceeded analysts' expectations, leading to a 6% surge in the company's stock. The growth was primarily driven by the cloud computing and advertising sectors.
Year-to-date, Amazon's shares have risen approximately 32%, reaching a level close to an all-time high. In the most recent quarter, Amazon reported a revenue increase of 11%, totaling $158.9 billion, surpassing analysts' forecasts. Earnings per share also exceeded expectations, coming in at $1.43 compared to the anticipated $1.14.
Amazon Web Services (AWS) saw sales rise 19% to $27.4 billion. However, this growth rate falls behind competitors like Microsoft and Google. Amazon's capital expenditures increased by 81% year-over-year, reaching $22.62 billion, reflecting the company's commitment to enhancing its technology infrastructure. The company plans to direct the majority of its capital expenditures towards meeting the growing demand for technology infrastructure.
Amazon's advertising segment also performed well, with sales expanding by 19% to $14.3 billion.
Looking ahead, Amazon has provided guidance for the current quarter, forecasting a year-over-year growth rate of 7% to 11%. The midpoint of this range falls slightly short of the average analyst estimate. As Amazon continues to invest in its technological capabilities and advertising growth, its ability to adapt and innovate will be crucial in maintaining its position as a leader in e-commerce and cloud services.