Another day, another Big Tech earnings!! Amazon reports Q3 2023 results after market close today. Revenue was $143.1B vs. $141.4B expected. EPS was $0.94 vs. $0.58 expected. AWS revenue was $23.1B vs. $23.2B expected. Advertising Revenue was $12.1B vs. $11.6B expected. The results are pretty solid and AMZN 0.00%↑ stock didn’t tank after the report. It only went down less than 1%.
It’s interesting that revenue for both AWS and GCP disappoints while Microsoft Azure was having a field day. Microsoft’s rep said much of their quarterly sales growth came from customers rekindling their use of Microsoft's cloud in anticipation of using AI services after the earnings release. I suppose more of AWS and GCP customers had already started to use AI before the ChatGPT frenzy while Azure’s customers were a bit late to the game and are catching up. It will be interesting to see how this AI spending goes in the next few years but I anticipate there will be more players competing for this AI compute market from startups to Nvidia. Hopefully, the compute will become so cheap that training and deploying models will cost so little that every software developer can afford it.