Amazon Web Services is becoming more profitable than it's been in two years.
Amazon Web Services widened its operating profit margin, delivering higher operating income than expected, but revenue came in a bit light.
During the quarter Amazon agreed to a big investment in artificial-intelligence startup Anthropic, which will work with various Amazon cloud services.. Analysts had expected a more rapid performance for the world's top provider of computing and storage services delivered from faraway data centers. The outcome suggests that the category, one of the liveliest parts of the mature information-technology sector, still faces challenges posed by an economy shaken up with rising prices and higher interest rates.. That's lower than the $23.20 billion consensus among analysts polled by StreetAccount. Growth was barely faster than in the second quarter, ending a six-quarter streak of deceleration.
Amazon had a happier story to tell on the profitability of its cloud business. It generated $6.98 billion in operating income, a figure that was up 29% and considerably more than the StreetAccount consensus of $5.63 billion. Amazon's entire business generated $11.19 billion in operating income. The AWS operating margin expanded to 30.3%, the widest in two years.
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