On October 26th local time, global e-commerce giant Amazon released its third quarter report. According to disclosure, Amazon's net sales increased by 13% year-on-year in the third quarter of this year, reaching $143.1 billion; The net profit reached 9.879 billion US dollars, a year-on-year increase of over 243%; Diluted earnings per share were $0.94, higher than market expectations of $0.6.
Among them, sales in the North American market increased by 11% year-on-year, reaching $87.9 billion; The sales revenue of international business increased by 16% year-on-year to 32.1 billion US dollars; The sales of AWS cloud computing business in the third quarter increased by 12% year-on-year, reaching $23.1 billion.
In this quarter's financial report, Amazon AWS's cloud revenue has received much attention from the outside world. In the third quarter, AWS cloud computing business sales increased by 12% year-on-year, ending the previous six consecutive quarters of slowdown and the first expansion and acceleration since the fourth quarter of 2021. However, the market believes that a growth rate of 12% is still not high.
As of the second quarter of this year, AWS has a leading market share in the global cloud market compared to other competitors. In August of this year, analysis firm Canalys released data showing that in the second quarter of 2023, Amazon Cloud Technology (AWS) continued to lead the cloud services market, accounting for 30% of the total market revenue, a year-on-year increase of 12%. Despite facing the dilemma of weak income growth, AWS continues to actively invest in the AI field. AWS announced an investment of $100 million in June 2023 for a new generative AI program. The second and third places are Microsoft Azure and Google Cloud, with market share of 26% and 9% respectively. During this period, the agency pointed out that in the second quarter, global cloud infrastructure service expenditures increased by 16% to $72.4 billion. Due to the impact of cost pressure felt by the market, the growth rate has decreased compared to the 19% in the previous quarter. However, the slowdown in growth is also a result of the expansion of market size.
Of course, as competitors, Microsoft and Google are constantly making efforts in the cloud computing market. Microsoft's newly released quarterly financial report shows that the revenue of its intelligent cloud department increased to $24.3 billion this quarter, a year-on-year increase of 19%; In the third quarter, Google's cloud business revenue increased by 22.5% year-on-year, reaching $8.41 billion. In contrast, in the third quarter, both grew faster than Amazon AWS.
However, Amazon executives have publicly stated that they believe the opportunity for generative artificial intelligence will bring tens of billions of dollars in revenue to Amazon AWS cloud services in the coming years.
For the fourth quarter, Amazon expects net sales to range from $160 billion to $167 billion, a year-on-year increase of 7% to 12% compared to the fourth quarter of 2022; Expected revenue for the fourth quarter is between $7 billion and $11 billion, compared to $2.7 billion in the fourth quarter of 2022.
As of the close of October 26th local time, Amazon's stock price fell 1.50% to $119.570 per share.