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Amazon’s Continued Growth Amidst Challenges
Amazon, founded by Jeff Bezos in 1995 in Bellevue, Washington, reports over $100 billion in quarterly net sales from North America. The company’s cloud-computing arm, Amazon Web Services (AWS), generates 69% of its operating income and faces an increasing demand driven by generative AI applications. As of the second quarter of 2023, AWS has a backlog of performance obligations valued at $195 billion, reflecting a 25% increase from the previous year.
On October 20, 2023, AWS experienced an outage affecting multiple internet platforms globally. Despite this setback, Amazon’s management remains optimistic, citing capital expenditures of $31 billion for the quarter to meet rising demands. The company’s growth trajectory indicates continued profitability, fueled by AWS, even amidst rising operational costs due to the AI boom.
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