Amazon's Q3 profit far exceeded expectations, driven by accelerated cloud growth, with capital expenses expected to increase next year.
Amazon's total revenue in the third quarter exceeded expectations, with EPS jumping by 55%. Although the revenue guidance for the year-end holiday shopping season is slightly below expectations, the profit guidance is bullish, and both the cloud business profit margin and the company's overall operating profit margin reached a new high. Some analysts claim that AWS has generated over $100 billion in revenue in the past 12 months for the first time. Capital expenditures are expected to be $75 billion this year, an increase of 55% year-on-year, and may be higher in 2025 or beyond.
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What answers have the financial reports of major companies provided to the most concerning issues in AI trading?
One of the main characteristics of the third quarter report is that technology giants continue to increase investment in AI without hesitation, with total capital expenditures of microsoft, google, and Meta increasing by 48% year-on-year. However, the returns brought by the huge investment are somewhat mixed, and the market may need to wait longer. In addition, the three major trends of 'hiring is not as good as buying cards', shifting from training to reasoning, and the marginalization of OpenAI by microsoft are becoming increasingly clear.
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Amazon | 10-Q: Quarterly report