1 Stat That Makes Amazon Hard to Ignore Right Now
Key PointsAmazon is still growing by double digits.
Amazon (AMZN) reported impressive third-quarter results, yet its stock initially dropped following earnings release. Concerns arose over the company's spending, as Amazon disclosed negative free cash flow for the third consecutive quarter. However, there were numerous positive aspects to the report, and the stock has since rebounded.
A key statistic that stands out is Amazon's sales growth - a 12% increase year-over-year, or 13% when adjusting for unfavorable foreign exchange fluctuations. While e-commerce growth was modest, the cloud division, Amazon Web Services (AWS), accounted for the majority of the growth. AWS sales surged 39% year-over-year, reaching levels not seen since four years ago, despite a significantly larger base.
Fortune 500 companies demonstrated a remarkable 700% increase in spending on Amazon Bedrock, with the total token volume on Bedrock increasing almost 17-fold. Moreover, Amazon has projected a 40% growth in AWS sales for both 2027 and 2028. CEO Andy Jassy remarked, "There has never been a trillion-dollar revenue business, and we may have two of them in the next 5-10 years." This compelling projection makes a strong case for investing in Amazon stock at present.
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