Fueled by strong customer spending and accelerating growth in its cloud computing business, Amazon reported higher fiscal third-quarter profit and sales compared to a year ago. This is because customers are seeking low prices amid inflation concerns.
Investor trust in the company’s well-known cloud computing division was restored when the results, released on Thursday, exceeded Wall Street expectations. The AWS cloud division of Amazon reported 20% year-over-year growth, up from 17.5% in the fiscal second quarter. AWS is expanding at a rate it hasn’t seen before 2022, according to a statement from Andy Jassy, president and CEO of Amazon. Despite providing a conservative sales projection for the fiscal fourth quarter, Amazon’s stock price rose 13.2% in after-hours trading on Thursday.
Amazon is on track to deliver to Prime members at the fastest speeds ever again this year, expand same-day delivery of perishable groceries to over 2,300 communities by the end of the year, and double the number of rural communities with access to Amazon’s same-day and next-day delivery, Jassy added. Amazon is also continuing to realize the benefits of innovating in its fulfillment network in stores.
As it increases its investment in artificial intelligence and reduces expenses elsewhere, Amazon really revealed on Tuesday that it is laying off roughly 14,000 corporate positions. On Tuesday, teams and individuals impacted by the layoffs received news.
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