Amazon reports rapid AWS growth alongside heavy investment and weaker ad growth
Technology · First reported 2 Nov, 20:30 · Updated 21:22
Amazon’s third-quarter report showed AWS revenue rising 39% to $46 billion and operating income increasing across its cloud and e-commerce segments. Overall revenue narrowly missed analysts’ expectations, advertising growth slowed, and trailing 12-month free cash flow was negative as capital spending increased. The article argues that cloud growth and e-commerce profitability make the stock attractive, while also noting the scale of planned investment.
- AWS revenue rose 39% year over year to $46 billion, while AWS operating income increased 56% to $17.8 billion.
- Amazon reported total revenue of $201.9 billion, just below analyst consensus, and advertising revenue growth slowed to 12%.
- Trailing 12-month free cash flow was negative $42.4 billion, and Amazon said it planned $220 billion in capital expenditure that year, with a further increase planned for 2027.
Summary written by Lux AI from 2 articles
Key facts
- AWS Q3 revenue
- $46 billion, up more than 39% year over year
- Total Q3 revenue
- $201.9 billion, up 12% year over year
- Q3 advertising revenue
- $19.6 billion, up 12%
- Trailing 12-month free cash flow
- Negative $42.4 billion
- Planned capital expenditure
- $220 billion for the year; Amazon planned a significant increase in 2027
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