Giant online retailer Amazon reported advertising revenue up 23% to $US15.694 billion in the June quarter, well ahead of overall growth.
Amazon is now the world’s third largest advertising player after Google and Meta.
The company’s overall net sales increased a better than expected 13% to $US167.7 billion.
“Our conviction that AI will change every customer experience is starting to play out as we’ve expanded Alexa+ to millions of customers, continue to see our shopping agent used by many millions of customers, launched AI models like DeepFleet that optimize productivity paths for our 1M+ robots, made it much easier for software developers to write code with Kiro (our new agentic IDE), launched Strands to make it easier to build AI agents, and released Bedrock AgentCore to enable agents to be operated securely and scalably,” said CEO Andy Jassy.
“Our AI progress across the board continues to improve our customer experiences, speed of innovation, operational efficiency, and business growth, and I’m excited for what lies ahead.”
Emarketer principal analyst Sky Canaves said Amazon once again blew past its conservative guidance.
“The stronger than expected revenue outlook for Q3 indicates that Amazon will maintain the momentum across its key business units of retail, advertising and cloud,” Canaves said.
“There’s a note of caution in the wide range in its operating income guidance for Q3, indicating that, as was the case in Q2, there’s still potential for curveballs from ongoing trade negotiations and accelerating competition on the AI front."
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