"Cloud Infrastructure Drives Amazon. Content Costs Weigh on Disney. Amazon Web Services grew 20% year-over-year to reach a $110 billion annualized run rate, re-accelerating to a pace not seen since 2022. CEO Andy Jassy noted that AWS's AI business alone is "growing more than three times faster at this stage of its evolution as AWS itself grew." The company's Trainium2 AI chip saw adoption surge 150% quarter-over-quarter."
"Disney's direct-to-consumer segment grew 8%, driven by Disney+ and Hulu subscriber additions. But that gain couldn't offset a 35% drop in Entertainment operating income, pulled down by weaker content sales and licensing revenue. Parks and experiences remained a bright spot, with operating income up 13%, but the segment can't carry the entire company while linear networks continue their structural decline."
"Amazon generated $21.19 billion in net income, up 38.2% year-over-year. Disney earned $2.55 billion, a recovery from weak prior-year comparisons but still reflecting the challenge of monetizing content in a fragmented media landscape. Capital Allocation Reveals Different Priorities Amazon spent $35.1 billion on capital expenditures in Q3, up 55% year-over-year, with the majority directed toward AWS data centers and AI infrastructure."
Amazon delivered 13.4% revenue growth and accelerating cloud momentum led by AWS, which grew 20% year-over-year to a $110 billion annualized run rate. AWS's AI business is expanding rapidly and the Trainium2 chip saw 150% quarter-over-quarter adoption. Amazon reported $21.19 billion in net income, up 38.2%, and increased capital expenditures to $35.1 billion, focused on data centers and AI infrastructure. Disney posted flat revenue, down 0.5% year-over-year; direct-to-consumer grew 8% but Entertainment operating income fell 35% due to weaker content sales and licensing, while Parks income rose 13%.
Read at 24/7 Wall St.
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