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Amazon shares soared 12% on Friday after the company reported an across-the-board beat for the third quarter and boosted its forecast for spending due to demand for artificial intelligence services.
Cloud was a major driver of revenue and profit growth, with sales at Amazon Web Services climbing 20% from a year earlier to $33 billion, topping expectations.
The unit generated operating income of $11.4 billion, accounting for roughly two-thirds of Amazon’s total operating profit.
Revenue in the digital advertising business, another growth engine, jumped 24% to $17.7 billion. Total sales at Amazon climbed 13% to $180.17 billion, topping the average analyst estimate of $177.8 billion, according to LSEG. Earnings per share came in at $1.95, exceeding the $1.57 average estimate.
