Amazon gives Wall Street mixed financial picture in earnings report
E-commerce company posts high cloud computing sales but gives a cautious sales forecast for the fourth quarter
TL;DR
- Amazon's fiscal third-quarter results were below Wall Street expectations.
- Sales in the AWS cloud computing unit rose by 39.3%, the fastest growth in nearly five years.
- The company provided a cautious sales forecast for the current fourth quarter.
- Amazon expects capital spending, primarily on AI, to total $220 billion for the fiscal year.
- This increased capital spending includes investments in robots, semiconductors, and satellites.
- Net income was $20.69 billion, or $1.89 per share, compared to $21.19 billion, or $1.95 per share, in the year-ago period.
- Sales rose to $201.94 billion from $180.17 billion in the year-ago period.
- For the fourth quarter, Amazon expects net sales between $240 billion and $247 billion.