Amazon (AMZN) Q3 earnings report 2024

Amazon reported better-than-expected earnings and revenue for the third quarter, driven by growth in cloud computing and advertising businesses. The stock ticked higher in extended trading.

Here are the results.

• Earnings: $1.43 vs $1.14 per share expected by LSEG
• Revenue: $158.88 billion vs $157.2 billion expected by LSEG

Wall Street is also watching several other numbers in the report:

• Amazon Web Services: $27.4 billion vs. $27.5 billion expected, according to StreetAccount
• Advertising: $14.3 billion vs. $14.3 billion expected, according to StreetAccount

In cloud, Amazon Web Services revenue was in line with consensus estimates, and it’s growing faster than the same period last year. Sales grew 19% year over year during the quarter, compared to a year ago, when sales accelerated just 12%. The company last year was navigating slowing growth in its cloud business as customers trimmed their budgets due to heightened economic concerns.

Advertising was another bright spot in the report. Sales in the unit expanded 19% year over year to $14.3 billion during the quarter, outpacing growth in Amazon’s core retail business.

Amazon forecast revenue in the current quarter to be between $181.5 billion and $188.5 billion, which would represent growth of 7% to 11% year over year. The midpoint of that range, $185 billion, fell short of the average analyst estimate of $186.2 billion, according to LSEG.

Operating income during the third quarter came in at $17.4 billion, showing that Amazon’s focus on efficiency and continued cost-cutting continues to lift the bottom line. Amazon CEO Andy Jassy has been laser focused on trimming expenses across the company, cutting more than 27,000 jobs since the beginning of 2022. Amazon has continued to restructure its teams this year.

Amazon and Apple, which also reports quarterly results on Thursday, round out a busy week of earnings for the top tech companies. Alphabet on Tuesday reported better-than-expected results, driven by cloud growth. Microsoft issued disappointing guidance on Wednesday, leading to the stock’s steepest selloff in two years, while Meta beat estimates but warned of significant acceleration in its infrastructure expenses next year.

This story is developing. Check back for updates.