Amazon misses Q3 estimates but cloud unit shows strong growth

Summarised from 2 outlets · Updated 29 Oct, 21:09 · Archive

Amazon's third-quarter profits and sales fell short of Wall Street expectations, though its cloud computing division grew 39.3 per cent.

Amazon reported third-quarter results below analyst estimates but posted strong growth in Amazon Web Services, which saw sales rise 39.3 per cent in the quarter ending 30 September, the fastest rate in nearly five years. The company offered a cautious outlook for the fourth quarter, which includes the critical holiday shopping period. Shares fell more than 5 per cent after the results were released as investors focused on the core business.

The company announced it would hire 300,000 U.S. seasonal workers for the shopping season, up from 250,000 the previous year. Investors have been monitoring Amazon's earnings to assess whether the company's significant spending on artificial intelligence is beginning to produce returns.

CEO and President Andy Jassy disclosed that capital spending, mostly in artificial intelligence including outlays on robots, semiconductors and satellites, is now expected to total 220 billion dollars. That is up from the 200 billion dollar investment plan announced in February and well above the 128 billion dollars in capital spending for the entirety of the previous year. Jassy cited higher costs of memory chips as the main reason for the increase.

How it is being reported

• Amazon's 3Q results miss analysts' estimates, but posts solid sales gains in cloud computing unitAmazon delivered fiscal third-quarter profits and net sales that came below Wall Street analysts' expectations but posted strong growth in its prominent cloud computing unit.News4Jax · 29 Oct, 20:27
• Amazon's 3Q results miss analysts' estimates, but posts solid sales gains in cloud computing unitAmazon offered a cautious sales outlook for the current fourth quarter that encompasses the critical holiday shopping period after delivering fiscal third-quarter results that came in below Wall Street analysts’ expectations.Clickorlando · 29 Oct, 20:27

In this story: Amazon · Amazon Web Services · Andy Jassy · Seattle · United States

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