AMAZON REPORTS BOOST IN QUARTERLY PROFITS.EXCEEDS REVENUE ESTIMATES AS IT INVESTS IN AI

Amazon reported a boost in its quarterly profits and exceeded revenue estimates, sending the company’s stock up in after-hours trading.

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For the three months that ended on Sept. 30, the Seattle-based tech giant posted a revenue of $158.9 billion, higher than the $157.28 billion analysts had expected.

Amazon said it earned $15.3 billion, higher than the $12.21 billion industry analysts surveyed by FactSet had anticipated. Amazon earned $9.9 billion during the same period last year. Earnings per share were $1.43, higher than analysts’ expectations of $1.14.

Net sales increased 11% compared with the third quarter of 2023, Amazon said.

The report offers a last look at Amazon’s business before the start of the holiday shopping season, the busiest time of year for the retail industry.

“As we get into the holiday season, we’re excited about what we have in store for customers,” said Andy Jassy, Amazon’s president and CEO. “We kicked off the holiday season with our biggestever Prime Big Deal Days and the launch of an all-new Kindle lineup that is significantly outperforming our expectations; and there’s so much more coming.”

The company said it expects revenue for the fourth quarter to be between $181.5 billion and $188.5 billion, compared with the $186.29 billion forecast by analysts.

The better-than-expected earnings come after Amazon missed revenue estimates last quarter,.