CFRA Analyst Arun Sundaram spoke with Yahoo Finance anchors Julie Hyman and Diane King Hall about Amazon's Q3 earnings results. Sundarum described the company as a 'a highly profitable and free cash flow juggernaut.'
Tech giant Amazon (AMZN) reported third-quarter earnings that beat analyst estimates this quarter, with operating income increasing more than 300% year-over-year. CFRA Analyst Arun Sundaram says that the results show that Amazon is "turning into a highly profitable and free cash flow-generating juggernaut." Pointing to the operating profit, Sundaram says "the best part is, that there's still a lot more efficiencies left to be unlocked for Amazon over the next, I would say, 3 to 5 years."
When it comes to Amazon Web Services (AWS), Sundaram says that although AWS saw flat growth this quarter, the fourth quarter looks more promising for growth based on new deals, that CEO Andy Jassy mentioned on the earnings call. However, when it comes to AWS losing market share to rivals like Microsoft (MSFT), Sundaram believes "it's way too early to tell" if that is happening.
"You can't just look at just the year-over-year growth rates and determine whether one is gaining market share at the expense of others," Sundaram tells Yahoo Finance, adding: "All these new opportunities in generative AI and machine learning we're still in the very early stages of that."
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