Amazon.com Thursday posted third quarter profit and sales that beat Wall Street estimates, sending shares up as much as 6% after the closing bell after they fell during the regular trading session.
Net income was $15.3 billion, exceeding the average estimate of $12.2 billion, according to LSEG data.
Amazon Web Services, the company's cloud business, reported a 19% increase in sales to $27.5 billion, in line with estimates, according to LSEG data.
Three months ago, Amazon shares tumbled as much 8% after executives cautioned that consumers were “cautious with their spending” and seeking more inexpensive options. Amazon faces heightened competition from discount retailers such as Shein and Temu and is planning a competitor to sell a wide range of goods at bargain-basement prices sent directly from China.
The revenue rise at the leading cloud provider compares with a 33% jump at Microsoft's Azure and a 35% surge at Google Cloud for the July-September quarter.
Amazon shares closed down 3.3% on Thursday ahead of the earnings report. The shares had risen almost 23% this year, beating a nearly 20% jump in the broader market.
Seattle-based Amazon said sales in its North America segment rose 9% to $95.5 billion in the third quarter.
It reported earnings of $1.43 per share, compared with expectations of $1.14 per share.
The company reported revenue of $158.9 billion in the third quarter ended September, compared with analysts' average estimate of $157.20 billion, according to LSEG data.
In August, Amazon said it expected revenue of $154.0 billion to $158.5 billion for the third quarter.