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Amazon Web Services Drives Surprising Profit For Amazon

Amazon Web Services Drives Surprising Profit For Amazon

As Amazon dukes it out with the New York Times over whether Amazon is or is not a nice place to work, the tech company reported surprising third-quarter profits.

During an earnings call on Thursday, Amazon revealed that Q3 proved more profitable than expected, with a 23% year-over-year increase in revenue to $25.4 billion. The increase comes largely from growth at Amazon Web Services, the cloud-computing platform that powers many major websites in the U.S., including Netflix, Reddit, LinkedIn, and Pinterest. Amazon Web Services brought in an impressive $2.08 billion in revenue, a 78% increase year-over-year.

The numbers have put Amazon stock on the rise (up $10 in after-hours trading) following analyst expectations that the company would post a loss of $0.13 per share.

In contrast to its success with Amazon Web Services, the company had little positive to say about its recently released, $50 Fire tablet, noting only that the tablet “has the best display on any tablet under $50 and is also available for an even lower price when purchased in a six-pack.” In August, Amazon laid off dozens of engineers from its consumer hardware division.

NR