Copyright Reuters
The massive cloud demand is helping the tech company ease the pressure from weaker growth at its e-commerce business, which is gearing up for the holiday season amid weakness in consumer confidence stemming from global trade uncertainty. Sign up here. The company's shares surged more than 10% in extended trading. Its cloud unit, Amazon Web Services, reported a 20% rise in revenue in the third quarter ending in September, compared with the estimates of a 17.95% increase. Amazon projected net sales of between $206 billion and $213.0 billion for the fourth quarter, while analysts on average were expecting revenue of $208.12 billion, according to data compiled by LSEG. Microsoft, Google-parent Alphabet and Facebook owner Meta all announced plans for higher annual capital expenditures as they pour money into chips and data centers. AWS typically accounts for a little more than 15% of Amazon's total revenue, but the segment is a huge profit engine, making up roughly 60% of the company's total operating income. The unit reported revenue growth of 17.5% in the second quarter. Reporting by Deborah Sophia in Bengaluru; Editing by Anil D'Silva
