Amazon Ads Business Jumps 24% From Prior Year to $17.7 Billion

The numbers$33 billion: How a lot Amazon made within the third quarter from its cloud-computing enterprise, Amazon Net Companies—up 20% year-over-year and beating analyst projections. AWS now has an annualized income run price of $132 billion.$17.7 billion: How a lot Amazon comprised of promoting within the second quarter, a rise of 24% year-over-year.13%: The quantity that Amazon’s whole web gross sales elevated in comparison with final yr’s Q3 earnings, to $180.2 billion.$1.8 billion: What Amazon expects to pay in severance charges associated to layoffs, which began this week when the corporate introduced cuts of round 14,000 company jobs. Reuters and The Wall Road Journal each reported that the full variety of affected jobs is predicted to hit 30,000.-69%: The drop in Amazon’s free money stream—right down to $14.8 billion versus the $47.7 billion reported in Q3 final yr—largely as a result of capital investments associated to synthetic intelligence.60%: Improve within the variety of rural communities which have entry to Amazon’s Similar-Day and Subsequent-Day Supply over the past 4 months.250 million: How many individuals have used Rufus, Amazon’s generative AI purchasing assistant, up to now this yr. The corporate claims individuals who use Rufus are 60% extra prone to full a purchase order.$2.5 billion: The settlement Amazon needed to pay this quarter after the FTC proved it misled folks and made it exceedingly troublesome to cancel subscriptions.The watercooler talkCEO Andy Jassy kicked off Amazon’s Q3 earnings name by discussing AWS, the corporate’s cloud-computing enterprise, noting that the 20% development price is a return to a tempo the corporate hasn’t seen since 2022. He additionally teased “a number of” new AWS offers signed in October that haven’t but been introduced.“AWS is the place the preponderance of corporations information and workloads reside, and a part of why most corporations wish to run AI on AWS,” Jassy stated. The AWS development numbers outpaced analysts’ expectations. The corporate’s shares jumped as a lot as 14% in after-hours buying and selling.The corporate nonetheless has extra demand for AWS companies than it has capability for, nonetheless. At present, the bottleneck is in energy, Jassy stated, although it might sooner or later shift to chips. Amazon has added 3.8 gigawatts of energy to its AWS infrastructure within the final yr, with one other gigawatt coming in This fall. For its promoting division, Amazon highlighted offers with Netflix, Spotify, and SiriusXM. The adverts enterprise noticed 24% development from the yr prior, to $17.7 billion in income. The important thing quoteAgentic commerce is coming.Whereas it’s change into very straightforward to purchase issues on-line when what you need, a bodily retailer with a bodily salesperson nonetheless has some benefits over ecommerce whenever you don’t know precisely what you need, Jassy defined in response to an investor query about agentic. However that’s going to alter as AI brokers get higher at guiding on-line purchasing experiences, he stated.“AI and agentic commerce options are going to broaden the quantity of purchasing that occurs on-line,” Jassy stated. “That’s actually good for patrons, and I believe it’s actually good for Amazon, as a result of on the finish of the day, you’re going to purchase from the outfit that permits you to have the broadest choice, nice worth, and continues to ship for you in a short time and reliably.”