New Delhi: E-commerce giant Amazon reported a strong second quarter, with advertising revenue jumping 20% to $12.7 billion compared to the same period last year. The company’s overall net sales also climbed 10% to $148 billion.
The majority of Amazon’s ad sales continue to stem from sponsored product listings displayed prominently on its online marketplace. This consistent growth in advertising revenue underscores the platform’s effectiveness in connecting brands with consumers.
While advertising is a significant contributor to Amazon’s bottom line, the company’s cloud computing division, Amazon Web Services (AWS), remains a major growth driver. CEO Andy Jassy highlighted the “continued reacceleration” of AWS, emphasizing its strong position in the cloud market due to broader functionality, superior security, and a robust partner ecosystem.
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AWS is also aggressively investing in generative AI capabilities, including SageMaker for model building, Bedrock for leveraging frontier models, Trainium for cost-effective compute, and Q for a comprehensive AI assistant.
Looking ahead, Amazon anticipates net sales for the third quarter to range between $154 billion and $158.5 billion, representing an 8% to 11% increase compared to the same period in 2023. However, the company cautioned that foreign exchange rates could negatively impact its performance by approximately 90 basis points.
As Amazon continues to expand its reach across e-commerce, advertising, and cloud computing, the company’s financial performance will be closely watched by investors and industry observers alike.
