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Amazon’s AI Bets and Cost-Cutting Measures Pay Off, Boosting Stock by 5%

by THEFUTURE.TEAM

November 1, 2024

Shares of Amazon surged over 5% in after-hours trading on Thursday after the company reported stronger-than-expected third-quarter earnings. Amazon announced earnings per share of $1.43, alongside revenue reaching $158.9 billion, surpassing analyst projections of $1.14 per share and $157.2 billion in revenue, according to FactSet.

Key Financial Highlights

North American Sales: Amazon’s North American segment recorded a 9% year-over-year sales increase, totalling $95.5 billion.
AWS Growth: Amazon Web Services (AWS), the company’s cloud unit, posted $27.5 billion in revenue, marking a 19% rise compared to the same period last year.
Stock Movement: Although Amazon’s stock initially fell over 3% on Thursday before earnings were released, it rebounded significantly in after-hours trading. So far, Amazon shares are up almost 24% year-to-date.

Background on Amazon’s Strategy

Amazon’s recent efforts include major cost-cutting moves, guided by CEO Andy Jassy, to streamline operations since 2022. This restructuring has led to over 27,000 layoffs and the closure of initiatives such as Amazon’s telehealth and same-day delivery services. Despite these reductions, Amazon is doubling down on other key areas, like a $52 billion investment in nuclear energy to support data centers in Virginia, Mississippi, and Ohio. The company is also moving forward with **Project Kuiper**, aiming to build a satellite network of 3,236 units to broaden internet access worldwide—a venture projected to involve over $10 billion in launch costs across five years, according to analysts from Wedbush Securities.

Amazon’s Market Reach

July’s Prime Day achieved “record-breaking sales,” while the introduction of Amazon’s AI-powered shopping assistant, **Rufus** was rolled out to U.S. customers last month. Notably, Amazon had slightly missed expectations in the previous quarter and cautioned that intense news cycles could distract customers—a factor cited by CFO Brian Olsavsky during the second-quarter earnings call. Despite these challenges, the company’s annual revenue is expected to remain strong.

Noteworthy Figures

Amazon’s market capitalization has reached $1.96 trillion, making it the fifth-largest company globally, trailing behind Apple, Nvidia, Microsoft, and Google. Meanwhile, Jeff Bezos, who served as Amazon’s CEO until 2021, holds a net worth of $204.1 billion, much of which is tied to Amazon’s stock. Market fluctuations ahead of Amazon’s earnings report momentarily decreased Bezos’ wealth by around $6 billion. Bezos ranks as the second-richest American, after Elon Musk, on the Forbes 400 list.

Moniepoint Secures $110 Million Funding Round Led by Google, Becomes Nigeria’s Latest Unicorn

by THEFUTURE.TEAM

November 5, 2024

Moniepoint, a Nigerian fintech company, has announced a successful $110 million funding round to scale its digital payment and banking services across Africa. Among the investors in this round are notable new supporters like Google’s Africa Investment Fund, as well as existing investors Development Partners International and Lightrock, a private equity firm. This investment reportedly places Moniepoint’s valuation above the $1 billion mark, officially granting it “unicorn” status, a prestigious milestone in the tech sector.

Founded in 2015, Moniepoint initially focused on building payment infrastructure for banks and financial institutions. However, it has since expanded its offerings to include personal banking services, which it introduced last year. Today, the company processes over 800 million transactions each month, with a transaction value exceeding $17 billion.

The latest funding will enable Moniepoint to further its footprint across Africa, where digital banking and payment services remain essential for economic growth and financial inclusion. With plans to develop a comprehensive platform for businesses, Moniepoint aims to offer solutions spanning digital payments, banking, foreign exchange, credit, and business management tools.

Nigeria, Africa’s largest fintech market with over 200 million people, represents a promising landscape for financial innovation. By expanding its services, Moniepoint hopes to bridge the gap for millions who still lack access to traditional banking, positioning itself as a major player in Africa’s digital finance ecosystem.