“We think there’s a nice long path here for continued growth in retail, continued growth in advertising and continued growth in cloud computing, all while boosting profits, which is a big change from the past 12 months or so,” Yarbrough said. Amazon denies this and says the generative AI race has barely begun.Īfter several difficult quarters in which Amazon had to address overspending and over hiring, it’s back to showing investors a clear path to boost sales and profits at the same time, said Brian Yarbrough, an analyst at Edward D. and Alphabet Inc.’s Google, which have released popular chatbots powered by the technology. Some analysts believe Amazon has fallen behind Microsoft Corp. AWS has been rolling out various products based on generative artificial intelligence. Olsavsky said growth rates for the cloud unit stabilized during the quarter and pointed to a healthy customer pipeline. While growth slowed for a sixth straight quarter, the unit still produced more revenue than Wall Street expected - surging 12% to $22.1 billion. Before being appointed by Jeff Bezos and the Amazon board during the fourth quarter of 2020, 7 8 Jassy served as the SVP and later as the CEO of Amazon Web Services from 2003 to 2021. Lipsman pointed to the ad business, saying it “held up especially well this quarter, and the picture should only get brighter in (the second half of the year) with Prime Day and the holidays adding to its momentum.”īefore the results, investors were particularly concerned about Amazon Web Services, the cloud business. Jassy (born January 13, 1968) 5 6 is an American business executive who is the president and chief executive officer (CEO) of Amazon. Since taking over in July 2021, Amazon CEO Andy Jassy has appointed. Advertising sales rose 22% to $10.7 billion and seller services revenue jumped 18% to $32.3 billion in the quarter.Ĭhief Financial Officer Brian Olsavsky said products from independent merchants represented 60% of all sales on the site, the highest ever, which contributed to growth of Amazon’s seller-services revenue. Since taking over in July 2021, Amazon CEO Andy Jassy has appointed over a third of the 27 executives now in his inner circle. The Seattle-based company is generating an increasing share of revenue from the more profitable business of providing services and advertising to independent merchants, who rent space on Amazon’s website and in its warehouses. Analysts, on average, projected $5.41 billion. Operating income will range from $5.5 billion to $8.5 billion. The company projected revenue will be $138 billion to $143 billion in the current period ending in September, compared with analysts’ average estimate of $138.3 billion. Earlier this week, Bloomberg Businessweek reported that Amazon is rebooting its grocery operation by offering fresh food delivery to shoppers without Prime subscriptions and more tightly integrating its Fresh and Whole Foods Market chains. Keen to retain a competitive edge in its core online retail business, Amazon on Monday said it would double the number of facilities capable of getting orders to customers the same day.
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