Business in Tech

As Amazon Earnings Miss, Its Web Services Revenue Continues To Beat Expectations

Amazon earnings fell below Wall Street expectations as reported yesterday.  The eCommerce and Cloud giant posted a revenue of $32.71b at 52 cents a share versus $32.69b at 78 cents a share in the third quarter. Their stock fell 5 percent yesterday on the news.

In North America, sales figures stood at $18.87b versus $19.09b from analysts but still beats Wall Street’s $10.44b expectations.

The holidays are here and Amazon is expected to have strong sales but even its outlook for the holiday season falls below expectations. They expect sales between $42b and $45.5b. Analysts were expecting $44.58b in sales and the median of the figures provided by Amazon gives $43.75b.

Amazon Web Services (AWS); the Cloud arm of the company continues to beat in revenues. In the second quarter of this year, AWS revenue was $2.88b in the second and that was a 58 percent year on year increase. In the third quarter, revenue stood at $3.23b versus $3.17b expected and this represents a 54.9 percent increase year on year.

AWS has seen some stiff completion from the likes of Microsoft Azure. Google Cloud, IBM SoftLayer among others. All of these companies have recorded a growth in revenue with respect to their Cloud divisions and this just shows that there is still a strong Cloud services demand out there.