As Amazon fights to catch up in the generative AI arms race, its core cloud business is providing the necessary firepower. Amazon Web Services (AWS) reported a 20% revenue jump, its best since 2022, signaling it still has muscle to flex against competitors like Microsoft and Google.
Amazon’s stock has lagged behind some tech rivals who have more aggressively capitalized on AI. This strong Q3 report, which beat sales and profit estimates, helped Amazon stock spike 9% and showed investors its own growth story is far from over.
On the earnings call, executives were keen to highlight their own AI initiatives. They discussed the integration of the Rufus shopping assistant and plans to test the Zoox robotaxi service in Washington D.C. later this year.
The company’s overall revenue hit $180.17bn, beating the $177.82bn estimate, while earnings per share were $1.95. This robust financial health comes even as the company confirmed 14,000 corporate layoffs, part of a plan to become more “nimble.”
CEO Andy Jassy offered a surprising explanation for the job cuts, denying they were driven by AI or financials. Instead, he claimed it was a “culture” shift to foster a “startup-style” operation within the tech giant.