Why did Amazon's net profit surge in Q3 2024?

Amazon's net profit surged in Q3 2024 due to a combination of factors:

1. Revenue Growth: Amazon's total revenue for the quarter was $187.79 billion. This significant revenue growth, up by 10% year-over-year, is a result of continued expansion in e-commerce and cloud computing services.
2. Operating Margin Improvement: The company's operating margin improved to 11.11%, indicating better efficiency in managing its core operations. This improvement is a result of Amazon's scale and economies of scale in its e-commerce and cloud computing divisions.
3. Gross Margin Increase: With a gross margin of 48.85%, Amazon showed improved profitability on its core business. This is a result of better pricing power and operational efficiency.
4. Investment in Growth Areas: Despite investing heavily in areas such as artificial intelligence, AWS, logistics, and Project Kuiper, Amazon has seen improvements in year-over-year operating margins. This suggests that these investments are yielding positive returns and contributing to the company's profitability.

In summary, Amazon's net profit surge in Q3 2024 is a result of strong revenue growth, improved operating and gross margins, and effective investments in growth areas. These factors combined have enabled the company to deliver robust financial performance.