Amazon.com Inc (AMZN) stock soared by 6.77% in pre-market trading on Friday, riding the wave of strong third-quarter earnings results. The tech giant reported net sales of $158.9 billion, marking an impressive 11% year-over-year increase and exceeding Wall Street’s expectations. This positive news sent the stock climbing upwards during the pre-market session, reaching $198.80 at the time of writing.
Amazon’s earnings per share for the third quarter came in at $1.43, surpassing the Street consensus estimate of $1.14. This performance further solidified the company’s robust financial position and its ability to navigate the current economic landscape. The company also exceeded analysts’ anticipated net sales of $157.2 billion, underscoring its continued dominance in the e-commerce sector.
Breaking down the sales figures, North America contributed $95.5 billion, marking a 9% year-over-year growth. This region continues to be a key driver of Amazon’s revenue, showcasing the company’s strong foothold in its home market. International sales reached $35.9 billion, reflecting a 12% increase, demonstrating Amazon’s ongoing expansion and success in global markets. Amazon Web Services (AWS), the company’s cloud computing arm, reported $27.5 billion in sales, a 19% rise from the previous year. This substantial growth reflects AWS’s enduring popularity and its critical role in driving Amazon’s overall profitability.
Looking ahead, Amazon’s guidance for the fourth quarter anticipates net sales between $181.5 billion and $188.5 billion, representing a 7% to 11% year-over-year growth. This projection suggests continued strong demand for Amazon’s products and services during the holiday season. The company also projects operating income to range from $16 billion to $20 billion in the upcoming quarter, indicating its commitment to maintaining a healthy profit margin despite the ongoing economic uncertainty.
With its robust financial performance, strong growth prospects, and expanding global reach, Amazon continues to be a major player in the tech industry. This latest earnings report reinforces its position as a leading force in e-commerce, cloud computing, and other key sectors.
