Holiday shoppers drove significant revenue growth for Amazon in the last quarter, as announced by the company on Thursday, coinciding with the launch of a new AI shopping assistant.
Amazon, the leading e-commerce platform, revealed a revenue of $170 billion for the quarter ending in December, surpassing analysts’ expectations and marking a 14% increase from the same period the previous year.
In a strategic move to enhance the shopping experience and showcase its commitment to artificial intelligence, Amazon introduced “Rufus,” an AI-powered shopping assistant. This innovative tool is designed to revolutionize the shopping process by leveraging Amazon’s extensive product database, community Q&A, customer reviews, and web data, as explained by CEO Andy Jassy during an analyst call.
The beta launch of Rufus took place on Thursday, initially accessible to a select group of Amazon app users, with plans for a wider rollout to US customers in the near future.
Alongside the revenue growth, Amazon reported a quarterly profit of approximately $10.6 billion. This positive financial performance reflects Amazon’s strengthened position entering 2024 compared to the challenges faced in 2023, including geopolitical uncertainties, economic fluctuations, and shifting consumer demands amidst the pandemic.
CEO Jassy’s proactive cost-cutting initiatives, initiated since late 2022 with significant layoffs, have contributed to Amazon’s improved financial outlook. Jassy emphasized the exceptional holiday shopping season and the overall success of 2023 for Amazon.
Following the earnings report, Amazon’s stock surged by over 7% in after-hours trading, indicating investor confidence in the company’s performance. Analysts, such as Jesse Cohen from Investing.com, noted Amazon’s resilience in the tech sector, attributing it to effective cost management strategies.
Amazon Web Services, a key revenue generator, experienced a 13% revenue increase to $24.2 billion in the last quarter. Jassy’s emphasis on investing in generative AI technology underscores Amazon’s commitment to staying competitive in the evolving tech landscape.
Moreover, Amazon’s advertising revenue rose by 27% year-over-year, with a positive outlook for the upcoming quarter. The company’s stock has witnessed a remarkable surge of around 90% since December 2022, reflecting a significant recovery from challenges related to interest rate hikes and inflation concerns.
Amazon’s robust performance and strategic investments position the company favorably for future growth and innovation in the tech industry.
