Amazon(US:AMZN) Huachuang Securities·2024-11-07 07:32Investment Rating - The report assigns a positive investment rating to Amazon, indicating expectations of outperforming the benchmark index by more than 20% in the next six months [34]. Core Insights - Amazon's FY24Q3 revenue reached $158.9 billion, reflecting an 11% year-over-year increase, with operating profit at $17.4 billion, up 55% year-over-year [6][11]. - The company is significantly increasing capital expenditures, projected to reach $75 billion for the year, primarily focused on technology infrastructure and delivery networks to support growth [6][11]. - Amazon Web Services (AWS) is experiencing rapid growth in AI-related services, with annual revenue growth exceeding 100%, significantly outpacing AWS's overall growth rate [6][11]. Summary by Sections 1. Performance Summary - FY24Q3 revenue was $158.9 billion, up 11% year-over-year, with operating profit of $17.4 billion, also up 55% [6][11]. - Net profit for FY24Q3 was $15.3 billion, reflecting a 55% increase year-over-year, with diluted earnings per share of $1.43, up 52% [6][11]. - Free cash flow for the past 12 months was $47.7 billion, a 123% increase year-over-year [6]. 2. Business Segment Performance - North America segment revenue was $95.5 billion, up 9% year-over-year, with operating profit of $5.7 billion, up 32% [8]. - International segment revenue reached $35.9 billion, a 12% increase year-over-year, with operating profit of $1.3 billion, compared to a loss of $0.1 billion in the previous year [9]. - AWS segment revenue was $27.5 billion, reflecting a 19% year-over-year increase, with operating profit of $10.4 billion, up 50% [10]. 3. FY24Q4 Performance Outlook - Projected revenue for FY24Q4 is expected to be between $181.5 billion and $188.5 billion, representing a year-over-year growth of 7% to 11% [11]. - Operating profit for FY24Q4 is anticipated to be between $16 billion and $20 billion, indicating a year-over-year increase of 21% to 52% [11].