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What was the most significant contributing factor to Amazon's better 20 results and 3Q optimism? Strong AWS results and cost control through localized fulfillment centers.
What was the most significant contributing factor to Amazon's better 20 results and 3Q optimism? Strong AWS results and cost control through localized fulfillment centers. The increased consumption from new AWS customers. A significant surge in the company's third-party seller services. A Post 20 Earnings Outlook: Amazon.com's strong AWS results and ability to control expenses through newer, cost-efficient localized fulfillment centers helped drive better 20 results and 30 optimism. Executive commentary gives us confidence that AWS growth rate could accelerate in 21 and near an inflection point for 30, we expect AWS sales gains to be near 11-13%, and then begin to improve from there, Largely with higher consumption from existing customers. It may take over a year before Al workloads make any noticeable contributions to AWS revenue growth. First- and third-party sales were also strong in 20 as shoppers sought Amazon for value in their everyday needs. A 221 gain in advertising was also notable. While capital expenditures are down year over year, Al will remain an area of investment. (08/03/23) Click to open/close Larticle.
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