[Amazon results] In Q3 2023, Amazon more than tripled net margin on the back of a savings plan and a return to fundamentals

After a post-Covid-19 pandemic slowdown, Amazon's net margin more than tripled in Q3 2023. Over the 9 months of the year, growth was driven by the digital marketplace, AWS and advertising - three divisions accounting for 73% of revenue gains. With US$6 billion in additional sales in 9 months, advertising has overtaken e-commerce and is now hot on the heels of AWS in terms of growth contribution.

Through Sophie Baqué. Published on 06 November 2023 à 13h29 - Update on 10 November 2023 à 11h16

While Amazon is being sued by the Federal Trade Commission (FTC) and 17 state prosecutors for accusations of monopolistic behavior, the group published Q3 results on October 26th, 2023. Quarterly sales totaled US$143.1 billion, up by 13% overall. Three business units in particular drove growth: online sales (1P and 3P), AWS and advertising. Revenue from advertising, which includes sponsored products, display and video advertising, jumped by 23% year-on-year, those from the digital marketplace by 19% and those from AWS by 13%. Online sales, the historic core of our business, were up 4% over the 3rd quarter.

This quarter highlights an improvement in profitability, critical to invest in generative AI, such as that in Anthropic.…