Amazon.com: Consensus largely beaten, the title climbs

(CercleFinance.com) – Amazon revealed last night a quarterly profit significantly higher than analysts’ estimates, a performance which eclipsed forecasts that were slightly less good than expected for the current quarter.

The American online commerce giant reported Thursday after the close of Wall Street an operating profit more than quadrupled for the third quarter, to 11.2 billion dollars compared to 2.5 billion a year earlier.

Its turnover increased by 13% to 143.1 billion dollars, again exceeding the consensus which targeted 133 billion.

For the fourth quarter, the Seattle group, however, projects a turnover of 160 to 167 billion dollars, or growth between 7% and 12%, while the consensus gave it at 167 billion dollars.

However, analysts welcomed this publication marked, according to them, by real discipline in terms of costs, at the origin of a continued improvement in margins.

‘From our point of view, the most important comment concerns the one concerning the contracts signed by AWS in September,’ say Stifel analysts.

According to a number of specialists, the level of orders concluded last month suggests that Amazon’s ‘cloud’ branch could return to a re-acceleration of its growth, an inflection point eagerly awaited by the market, from the fourth quarter.

‘Overall, these results are in line with our view that operating margin is improving, advertising revenue has room to grow (with first ads on Prime Video in 2024) and AWS growth appears to be on track. the point of reaching its low point’, concludes Stifel.

These announcements caused the stock to jump by almost 7% on Friday in the first transactions on Friday on Wall Street, for a capitalization which now exceeds 1,320 billion dollars.

Amazon stock – one of the ‘Magnificent Seven’ expected to be the big winners from the emergence of generative artificial intelligence – has gained more than 42% since the start of the year.

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