Amazon forecasts fourth-quarter revenue of up to $247 billion — Channel NewsAsia

In the United States, Amazon forecasts fourth-quarter revenue in the range of $240 billion to $247 billion. The company’s forecast was mostly below the average Wall Street analysts’ estimate of $244.51 billion, Channel NewsAsia reports.

Holiday season forecast

Amazon’s restrained expectations for the final quarter of the year heightened concerns about retail demand during the key holiday season. The report notes that spending by U.S. households is under pressure from inflation, rising living costs and fuel prices.

At the same time, the National Retail Federation of the United States had previously forecast that total holiday season sales in the country would increase by 4.2% compared with the previous year.

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AWS growth

Amazon Web Services revenue in the third quarter, which ended in September, rose by 39% to $46 billion. Analysts surveyed by LSEG had expected growth of 38.2% to $45.61 billion. In the second quarter, AWS revenue increased by 37%.

Retail sales account for most of Amazon’s revenue, but investors are increasingly focusing on the AWS cloud division. The company is investing heavily in the development of data centers, competing in the global artificial intelligence market, while also expanding fast delivery and coverage in rural areas of the United States.