Amazon’s Q3 earnings report reflects a company in good health. It has grown across key business divisions accelerated by high consumer demand and operational improvements. The e-commerce giant reported strong year-over-year sales increases internationally and on Amazon Web Services (AWS). The company has had an impressive increase in operating income and cash flow, further supporting Amazon’s operational flexibility in an ever-changing economic environment.
● Revenue: Increased 11% to $158.9 billion compared to $143.1 billion in Q3 2023.
● Operating Income: Jumped to $17.4 billion compared to $11.2 billion in Q3 2023.
● Net Income: Grew to $15.3 billion, up from $9.9 billion in Q3 2023.
● Operating Cash Flow: Up 57% to $112.7 billion for the trailing twelve months, compared with $71.7 billion a year ago.
● Free Cash Flow: Increased to $47.7 billion for the trailing twelve months, compared with $21.4 billion for the same period in 2023.
Market analysts maintain an optimistic outlook on Amazon’s share price, pointing out the strong growth in AWS and advertising as key drivers for long-term growth potential. This positive sentiment has led financial institutions to revise their price targets upwards, reflecting confidence in Amazon’s continued expansion and operational efficiency. Telsey Advisory Group raised its price target from $215.00 to $235.00, Baird revised its target from $213.00 to $220.00, and Bernstein increased it from $225.00 to $235.00. However, concerns remain about competitive pressures in the cloud division. The strong results signal a sustainable growth path with analysts believing in Amazon's upward share price movement.
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** This article was prepared by BROKSTOCK analyst Maboko Seabi
