Amazon surpassed earnings expectations in its Q3 report, which declined after the bell on Thursday. Photo: APThank you for reading this post, don't forget to subscribe!
So far this week, Amazon has experienced a week of losses, with its stock plummeting on Wednesday as investors were deterred by a perceived slowdown in cloud computing – a crucial aspect of its business.
However, Friday may mark a reversal of fortunes for Amazon, as an earnings report published late on Thursday revealed a 13% increase in revenue compared to the previous year, surpassing analysts’ predictions. Amazon reported revenue of $143.1 billion for the quarter ending in September.
Its quarterly profit was $9.9 billion, exceeding estimates, while it emphasized that artificial intelligence (AI) will be pivotal for the future of its business.
Sales for AWS rose 12% to $23.1 billion in the quarter. Its advertising revenue also reached $12.1 billion, signifying a 26% growth from last year, when advertisers were still exercising caution amidst the pandemic.
By 10.40 am in London, Amazon appeared poised to open with gains of over 6% when markets opened later in the US.
NatWest stock lost over 10% of its value on Friday, following the bank’s publication of the results of an independent investigation into its handling of the Nigel Farage and Coutts scandal.
Sir Howard Davies, Chairman of NatWest Group, stated that the investigation conducted by law firm Travers Smith had uncovered “serious failings” in how the politician’s discrediting was handled.
He expressed, “While Travers Smith confirms the valid reasons for the departure decision, the findings reveal failures in the decision-making process, as well as in our communication with them and pertaining to customer privacy. We once again apologize to Mr. Faraz for how he was treated.”
Investigations by both NatWest and the UK financial regulator are ongoing, with more details yet to be revealed.
Read more: British Airways owner’s stock declines despite reporting record profit in the third quarter
“In recent weeks, we have notified both companies that we are currently reviewing the companies’ governance, systems and controls to identify and rectify any significant deficiencies,” stated the UK Financial Conduct Authority on Friday. How are you working?
“This supervisory work will encompass the utilization of our statutory information gathering powers, interviews with relevant bank personnel, and an examination of appropriate policies or procedures.”
Intel released its third-quarter earnings after the market closed on Thursday, surpassing analysts’ expectations in terms of revenue and profit, and providing Q4 guidance predicting revenue growth for the first time since 2020.
The chip maker’s shares surged nearly 8% in pre-market trading following the report.
“We achieved a robust third quarter driven by overall progress on our process and product roadmaps, collaborations with new foundry customers, and momentum to universalize artificial intelligence,” stated Intel CEO Pat Gelsinger in a statement.
“We continue to make significant progress on our IDM 2.0 transformation by advancing our strategy, rebuilding our execution engine, and honoring our commitments to our customers.”
Intel’s Q3 revenue amounted to $14.1 billion with adjusted earnings per share (EPS) of $0.41. Analysts had projected revenue of $13.5 billion and adjusted EPS of $0.31.
Intel’s stock has been consistently declining since mid-October.
Google’s parent company, Alphabet, has observed its stock decline more than 10% this week, despite its earnings surpassing analysts’ expectations both in terms of revenue and profit.
This was attributed to weaker-than-anticipated results from its cloud division and lower-than-expected operating margins as observers followed its performance throughout the week.
Premarket trading data suggests its stock is poised for a modest increase at the opening, concluding a challenging week.
WATCH: Amazon Cloud sales are stabilizing, but buyers are cautious