Amazon, the leading global e-commerce giant, exceeded expectations for profits and sales in the third quarter, significantly fueled by a notable increase in its cloud services and online advertising segments.

For the quarter ending September, Amazon reported a net income of $15.3 billion, a substantial rise from $9.9 billion during the same period last year. The company’s Web Services division, which encompasses its cloud operations, saw a 19% increase in sales, reaching $27.5 billion, aligning with market forecasts.

The North America segment experienced a 9% growth in sales, amounting to $95.5 billion, contributing to total company revenue of $158.9 billion, which surpassed analysts’ predictions of $157.20 billion. The online advertising sector also performed well, with a 19% year-over-year increase, generating $14.3 billion.

Shares of Amazon increased by $8.05, or 4.3%, reaching $194.68 in after-hours trading in New York. This rise has contributed to an almost 23% increase in stock value since the beginning of the year, bringing the company’s market capitalization to $2 trillion.

Founded in 1994 by Jeff Bezos in Seattle, Washington, Amazon has diversified interests in various sectors, including retail, streaming services, and advertising. Bezos continues to serve as the executive chairman and remains the largest individual shareholder in the company.

Earlier this year, investors were apprehensive as Amazon signaled that consumers were becoming more cautious with spending and were opting for cheaper alternatives. The company is facing increased competition from discount retailers like Shein and Temu in China and is strategizing to introduce a new marketplace that will offer a wide variety of goods from that region at competitive prices.

CEO Andy Jassy remarked, “We kicked off the holiday season with our largest-ever Prime Big Deal Days and launched a brand-new Kindle lineup that is exceeding our expectations.”

He further mentioned that Amazon plans to unveil over 100 new cloud infrastructure and artificial intelligence capabilities on AWS following the Thanksgiving holiday.