"Amazon posted higher fiscal third quarter profit and sales compared with a year ago, fueled by accelerating growth in its cloud computing business and strong spending by its customers looking for low prices at a time when inflation is resurging.The results, announced Thursday, beat Wall Street expectations. The company's prominent cloud computing arm also surpassed analysts' expectations, rising 20%. But Amazon issued a cautious sales outlook for the fiscal fourth quarter."
"But Amazon, based in Seattle, is also under pressure to shore up confidence among investors that its computing arm Amazon Web Services is just as powerful as Microsoft's Azure and Google's Google Cloud platform. Amazon delivered better-than-expected 20% growth for AWS, following a 17.5% growth in the fiscal second quarter. Andy Jassy, president and CEO of Amazon, noted in a statement that AWS is growing at a pace it hasn't seen since 2022."
"Last week Amazon grappled with a massive outage of AWS after a problem disrupted internet use around the world for most of the day, taking down a broad range of online services, including social media, gaming, food delivery, streaming and financial platforms.Jassy also noted Amazon is seeing strong momentum and growth across Amazon as artificial intelligence drives "meaningful improvements in every corner of our business.""
Amazon reported higher fiscal third-quarter profit and sales year-over-year, powered by accelerated growth in its cloud computing business and strong customer spending seeking low prices amid rising inflation. The company beat Wall Street expectations and saw AWS revenue rise 20%, outperforming the prior quarter's 17.5% growth. Shares jumped nearly 13% in after-hours trading. Amazon faces investor pressure to match Microsoft and Google in cloud capabilities and is managing cost pressures from tariffs. AWS experienced a recent global outage, and Amazon cites artificial intelligence momentum, faster Prime delivery, and expanded same-day grocery service as operational priorities.
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