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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.

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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.

The Future Forbes Realty Global Properties

SpaceX Boosts Tesla Megapack Purchases To Support AI Expansion

by News Editor

August 5, 2026

SpaceX spent $329 million on Tesla’s Megapack battery systems during the first half of 2026, highlighting the growing energy demands of the company’s expanding artificial intelligence infrastructure.

According to SpaceX’s latest earnings report, $295 million of those purchases were made during the second quarter alone, marking a sharp increase in investment in large-scale energy storage.

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Powering AI Infrastructure

The battery systems are expected to support SpaceX’s AI data centre operations, where electricity demand fluctuates significantly as computing workloads increase during AI training and inference.

Megapacks help stabilise power consumption by storing electricity and providing additional capacity during periods of peak demand, while also serving as backup power in the event of outages.

Growing Links Across Musk’s Companies

The purchases further illustrate the close operational ties between Elon Musk’s businesses. Before merging with SpaceX earlier this year, xAI had also invested heavily in Tesla’s battery storage systems for its own data centres.

SpaceX’s regulatory filing also showed the company had previously purchased $131 million worth of Tesla Cybertrucks, reflecting continued commercial activity between Musk-led companies.

AI Drives Infrastructure Investment

As AI companies expand computing capacity, demand for energy infrastructure is rising alongside investment in data centres. Battery storage has become an increasingly important component of those facilities, helping operators manage electricity costs while maintaining stable performance during intensive computing workloads.