Amazon's Cost-Cutting Efforts Drive Record Profit Margin and Future AI Growth

Amazon's profit margin reached its highest level since early 2021, with an operating margin of 7.8% in the third quarter, thanks to CEO Andy Jassy's cost-cutting efforts. Jassy has been focused on trimming costs, eliminating jobs, and reshaping Amazon's fulfillment network for increased efficiency. The company's operating margin was historically in the low single digits, but Jassy's optimization initiatives have turned Amazon into a profit machine. The company's revenue also beat estimates, climbing 13% to $143.1 billion, with advertising services playing a key role in the earnings bump. Jassy plans to continue cutting costs and being cautious with hiring.