Amazon’s cloud growth offsets slower sales as investment spending weighs on cash flow

AI · First reported 29 Oct, 22:30 · Updated 16:47

Image: Wikimedia Commons · NASA Johnson Space Center · Public domain

Amazon reported third-quarter revenue growth, led by AWS, while online sales and advertising fell short of expectations and free cash flow declined. Its shares fell in after-hours trading; the available coverage ranges from a detailed account of results and investment spending to a brief focus on missed expectations and cloud growth.

Amazon’s third-quarter revenue rose 12% year over year to $201.9 billion, while AWS revenue increased 39% to $46 billion.
Online sales and advertising revenue were below the expectations cited in the report; free cash flow over the past 12 months was negative $42.4 billion.
Amazon shares fell about 8% in after-hours trading, despite accelerating AWS growth, according to the supplied coverage.

Summary written by Lux AI from 2 articles

Key facts

Third-quarter revenue: $201.9 billion, up 12% year over year
AWS revenue: $46 billion, up 39% year over year
Online sales: $68.5 billion, up 2%; the report cites an expectation of $69.7 billion
Free cash flow: Negative $42.4 billion over the past 12 months
Fourth-quarter revenue outlook: $240 billion to $247 billion
After-hours share move: Down about 8%