Amazon shares are up nearly 11% on Friday.and the value of the entire company increased as much as USD 246 billion, which brought it closer to Alphabet (Google), fourth in the global ranking. Amazon is currently valued at $2 trillion 633 billion.and Alphabet after a slight decline to USD 3 trillion 383 billion. Nvidia has the highest capitalization in the world the first company in history to exceed USD 5 trillion. market value.
But while the largest shares in Nvidia are held by large investment funds Vanguard and BlackRock, and the company's founder Jensen Huang has only a 3.6% stake. shares with a current value of USD 190 billion, it Jeff Bezos has 8% in Amazon. shares worth as much as USD 218 billion thanks to Friday's increase.
Bezos' entire fortune (not only Amazon shares, but also Blue Origin and The Washington Post) Thanks to this, it increased to a total of USD 267 billion.which gives him the third position in the world. The only person ahead of him is Elon Musk, the owner of, among others, 12 percent Tesla shares and Larry Ellison, owner of 41 percent. Oracle shares – according to the Bloomberg billionaires ranking.
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Where did Amazon's share price increase so high? The market had previously placed a doubt on the company's ability to grow its cloud services business and this market was miscalculated. Revenues for Amazon Web Services, the center of the company's recent investments in artificial intelligence, increased by 20.2 percent year-on-year in the third quarter to USD 33 billion. Analysts predicted an increase, but “only” by 18 percent, so it is a positive surprise. And although Microsoft Azure's revenues increased by 40%. y/y, and Google Cloud by 34%, the scale of AWS's operations increases its impact on market share – writes Reuters.
Amazon's revenue from the cloud services sector amounting to $33 billion. for example, they constitute more than double Google's revenue from this sector of $15.2 billion.
“There was definitely concern that AWS would lose market share to Microsoft Azure and Google Cloud. But now AWS has also joined the train and is seeing significant revenue growth,” said Jed Ellerbroek, portfolio manager at Argent Capital, as quoted by Reuters.
Amazon CEO Andy Jassy said in a statement that Amazon Web Services is “growing at a pace we haven't seen since 2022.” and highlighted the high demand for artificial intelligence.
“We continue to see strong demand for AI and underlying infrastructure. We are focused on accelerating capacity growth – we have added over 3.8 gigawatts in the last 12 months,” Jassy said.
Until Friday's stock price surge, Amazon's stock had risen just 1.6% this year. due to market share concerns and lack of solid AI updates. As a result, the company achieved the worst results among the “Magnificent Seven” of technology giants.
Amazon's total revenues amounted to $180 billion in the third quarter. and were higher by 13%. rdr. The North American region, which accounts for the majority of sales for the company, grew by 11%. to USD 106 billion, and the international segment by 14%. up to USD 41 billion
The company's net result amounted to USD 21.2 billion. and was higher by 39%. year to year. Despite this, the company's cash resources shrank to $14.8 billion. with USD 47.7 billion a year earlier, mainly due to higher by USD 50.9 billion. year-to-year investments in fixed assets.
