Amazon Reports Q3 Revenue Growth and Strong Market Visibility
Amazon’s cloud computing division, AWS, generated $33 billion in revenue for the third quarter of 2023, reflecting a year-over-year increase of 20.2%. This growth is attributed to heightened enterprise investments in artificial intelligence (AI), resulting in a substantial backlog of $200 billion. The company anticipates capital investments of $125 billion by 2025, primarily to expand its AI infrastructure.
Advertising revenue also surged, climbing 22% year over year to $17.7 billion in Q3. Analysts project that advertising could contribute $68 billion in revenue by 2025, potentially accounting for 35% of Amazon’s total operating income. Currently, Amazon’s shares are nearing an all-time high of $254, buoyed by these growth trends.
