Last week Amazon reported third-quarter results which were slightly disappointing compared to expectations. Sales grew 15% to $110.8 billion versus estimates of $111.5 billion. This was because e-commerce sales only grew 3%. I suppose that makes sense because many businesses are struggling to produce enough stock to sell, due to logistics challenges. Amazon's in-house and third-party retailers are probably dealing with the same problems.
Amazon's services businesses are growing super-fast. AWS increased sales by 39%. Vestact is a proud AWS customer.
This was also Andy Jassy's first full-quarter as CEO. He had the following to say. "We've always said that when confronted with the choice between optimising for short-term profits versus what's best for customers over the long term, we will choose the latter - and you can see that during every phase of this pandemic."
Since the pandemic, AWS have doubled the size of their installed server capacity, at massive cost. As shareholders we fully endorse these capital investments for future growth.
The Amazon share price is still hovering at around $3 300. We think this is a good opportunity to buy shares in a great company.