Glonghui, Feb. 4 | China Merchants Securities released a research report saying that Amazon released its 2023Q4 financial report, with performance exceeding expectations. Revenue was US$169.96 billion, +13.9% YoY; operating profit was US$13.21 billion, +383% YoY; and net profit was US$10.63 billion. By business, the Q4 online store business was +9.3% year-on-year, and third-party service revenue was +19.9% year-on-year, and the growth rate improved quarterly. Global unit service costs dropped sharply in 2023. It is expected that in 2024 and beyond, the company will still have room to reduce costs in terms of fulfillment structures, inventory arrangements, etc., and costs are expected to improve further. Q4 revenue from the advertising business maintained a relatively rapid growth rate, with a year-on-year increase of 26.8%. Amazon strengthened the development of the streaming TV advertising business this quarter, effectively attracting brands to increase their marketing. The growth trend of AWS has remained steady, and the trend of cloud business customer cost optimization gradually weakened this quarter, and large-scale new transactions were generated at an accelerated pace. The company also maintained long-term cooperation with organizations such as BYD, LG, and BMW to support the long-term steady development of the cloud business. Furthermore, at the level of generative AI applications, Amazon launched Rufus generative artificial intelligence shopping assistant, which will help users conduct intelligent review screening and product recommendations. In the long run, the development of generative artificial intelligence services is expected to bring the company tens of billions of dollars in revenue.