The tech giant, Amazon, recently dealt with a disappointing blow to its earnings, falling below Wall Street expectations. However, in a cloud with a silver lining scenario, it was observed that the company’s Web Services revenue continues to outpace financial forecasts.
Following the detailed report released yesterday, Amazon – the global titan of eCommerce and cloud computing, posted revenues of a whopping $32.71 billion. Nevertheless, this tally, which equates to 52 cents per share, falls short when compared to 2020’s third-quarter record of $32.69 billion at 78 cents per share. Consequently, these less than favorable numbers sent Amazon’s stock spiraling down by 5% amidst the news.
Focusing on the company’s North American performance, the sales figures landed at $18.87 billion. This number stands up in contrast to last year’s $19.09 billion, but still impressively surpasses Wall Street’s expectations of $10.44 billion.
The arrival of the holiday season traditionally signals a period of strong sales for Amazon. However, even their sales forecast for this lucrative period falls slight of the expected boom. Amazon’s forecast predicts revenue ranging between $42 billion and $45.5 billion. Analysts had painted a more prosperous picture, setting their sights at a specific target of $44.58 billion in sales – a number that Amazon merely attains an average of $43.75 billion.
Despite falling short of overall expectations, Amazon’s Cloud wing, Amazon Web Services (AWS), stands strong. The second quarter provided promising results for AWS, displaying revenue of $2.88 billion – symbolizing a significant 58% year-on-year boost. The third quarter bolstered this success story, revealing a revenue of $3.23 billion, which surpassed the expected $3.17 billion and reflecting a handsome 54.9% year-on-year increase.
While the likes of competitor cloud services such as Microsoft Azure, Google Cloud, and IBM SoftLayer provide formidable opposition, AWS remains unphased. Each of these competitors has witnessed an increase in revenue from their respective cloud divisions, proving that a robust demand for cloud services persists in the tech market.
This article was updated in 2025 to reflect modern realities.
Paul Balo is the founder of TechBooky and a highly skilled wireless communications professional with a strong background in cloud computing, offering extensive experience in designing, implementing, and managing wireless communication systems.
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