Amazon(US:AMZN) Huaan Securities·2024-11-05 10:36Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company's performance significantly exceeded expectations, with cloud business operating profit margin reaching a record high [1] - For Q3 2024, the company reported revenue of $158.88 billion, a year-on-year increase of 11%, slightly above Bloomberg consensus expectations of 1% [1] - The operating income was recorded at $17.411 billion, up 55.6% year-on-year, significantly higher than Bloomberg's consensus expectation of 18.1% [1] - The guidance for Q4 operating profit is expected to be between $16 billion and $20 billion, with the midpoint exceeding Bloomberg's expectation of $17 billion [1] Financial Performance - Revenue by segment: - Online store revenue was $61.4 billion, up 7.2% year-on-year - Physical store revenue was $5.2 billion, up 5.4% year-on-year - Third-party retail revenue was $37.9 billion, up 10.3% year-on-year - Subscription revenue was $11.3 billion, up 10.9% year-on-year - AWS revenue was $27.5 billion, up 19.1% year-on-year [1] - The company expects revenues for 2024-2026 to be $636.3 billion, $702.8 billion, and $770.6 billion, representing year-on-year growth rates of 10.71%, 10.44%, and 9.66% respectively [2] Profitability Metrics - The operating profit margin (OPM) for AWS reached 38.1%, up 7.8 percentage points year-on-year, and the operating profit was $10.447 billion, significantly exceeding Bloomberg's consensus expectation of 14.5% [1] - The international retail OPM reached 3.6%, a record high, with operating profit of $1.3 billion, far exceeding Bloomberg's expectation of $400 million [1] - The company anticipates a capital expenditure (Capex) of $75 billion for the full year of 2024, indicating a Q4 Capex of $23 billion, higher than Bloomberg's expectation of $19 billion [1]