Amazon Stock Price Gapped Up 6.7% on Upbeat Q3 Earnings Results

The Amazon.com, Inc. (NASDAQ: AMZN) stock price gapped up 6.67% after releasing its Q3 earnings results as the company recorded impressive financial results, with net sales reaching $143.1 billion, marking a 13% increase compared to the same period in 2022 when net sales were at $127.1 billion.

Excluding the favourable impact of $1.4 billion due to changes in foreign exchange rates year-over-year, net sales still showed significant growth of 11% compared to the third quarter of 2022. In the North America segment, sales surged 11% year-over-year, reaching $87.9 billion.

The International segment also experienced robust growth, with sales increasing by 16% year-over-year, totalling $32.1 billion. Even when excluding the effects of changes in foreign exchange rates, international sales still showed an impressive 11% growth.

The AWS (Amazon Web Services) segment, a key driver of Amazon's profitability, achieved a 12% year-over-year increase in sales, reaching $23.1 billion. 

The company's operating income also exhibited remarkable growth, reaching $11.2 billion in the third quarter, in sharp contrast to the $2.5 billion in operating income during the same period in 2022.

The North American segment's operating income reached $4.3 billion, a significant improvement compared to the operating loss of $0.4 billion in Q3 2022. The International segment's operating loss fell to $0.1 billion, improving from the operating loss of $2.5 billion in Q3 2022.

Andy Jassy, Amazon CEO, said: “We had a strong third quarter as our cost to serve and speed of delivery in our Stores business took another step forward, our AWS growth continued to stabilise, our Advertising revenue grew robustly, and overall operating income and free cash flow rose significantly. The benefits of moving from a single national fulfilment network in the U.S. to eight distinct regions are exceeding our optimistic expectations and, perhaps most importantly, putting us on pace to deliver the fastest delivery speeds for Prime customers in our 29-year history.” 

“The AWS team continues to innovate and deliver at a rapid clip, particularly in generative AI, where the combination of our custom AI chips, Amazon Bedrock, is the easiest and most flexible way to build and deploy generative AI applications.” 

Amazon stock price. 

The Amazon.com (AMZN) stock price gapped 6.67% to trade at $127.55 from Thursday’s closing price of $119.57.