Key Stats for Amazon Stock
- Pre-market Price Change for Amazon stock: 12%
- $AMZN Share Price as of Oct. 30: $223
- 52-Week High: $242
- $AMZN Stock Price Target: $161
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What Happened?
Amazon (AMZN) stock exploded more than 12% after crushing Q3 earnings expectations and delivering its strongest cloud growth in over two years.
The e-commerce and cloud computing giant reported earnings of $1.95 per share on revenue of $180.17 billion, easily beating analyst estimates of $1.56 per share on $177.76 billion in sales.
However, the real story was Amazon Web Services, which grew 20.2% to reach $33 billion in quarterly revenue, well above the $32.42 billion analysts had expected and marking AWS’s fastest growth rate since 2022.
Amazon has added more than 3.8 gigawatts of power capacity in the past year to support customers building AI applications.
The company just opened its massive $11 billion Project Rainier data center, built specifically to run AI models from Anthropic, the company behind the Claude chatbot.
Amazon’s advertising business also performed well, growing 22% to $17.7 billion and beating estimates.
The company’s retail division posted solid 10% growth, thanks in part to July’s Prime Day event. Management highlighted strong traction for Rufus, Amazon’s AI shopping assistant, which has been used by 250 million customers this year. Notably, shoppers who interact with Rufus are 60% more likely to complete a purchase.
For the current quarter, Amazon guided to revenue between $206 billion and $213 billion. The midpoint of $209.5 billion topped analyst expectations of $208 billion, suggesting momentum will continue through the holiday season.
The company raised its 2025 capital expenditure forecast to $125 billion, up from a previous estimate of $118 billion, with CFO Brian Olsavsky signaling that the number will likely climb even higher in 2026 as AI investments accelerate.
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What the Market Is Telling Us About AMZN Stock
The massive jump in Amazon stock indicates that investors are relieved the company is finally proving it can capitalize on the AI boom.
While competitors Google and Microsoft have grabbed headlines with faster cloud growth rates—34% and 40% respectively—Amazon remains the market leader with a $132 billion annualized revenue run rate for AWS.
Wall Street was worried that Amazon was falling behind in AI, and the tech stock had only gained about 1.6% year-to-date before this earnings report, significantly trailing other tech giants.
The 20.2% AWS growth rate represents a meaningful acceleration and demonstrates that enterprises are choosing Amazon for both traditional cloud workloads and cutting-edge AI applications.
Jassy emphasized that AWS backlog reached $200 billion, with several major deals signed in October that exceeded the entire third quarter’s deal volume.
Amazon stock got an additional boost from strong guidance that exceeded expectations on both revenue and operating income. The company expects operating income between $21 billion and $26 billion in the fourth quarter, compared to analyst estimates of $23.8 billion.
Operating income for the third quarter totaled $17.4 billion, which included a $2.5 billion FTC settlement and $1.8 billion in severance costs.
Without these charges, operating income would have been $21.7 billion—well above the high end of guidance.
Jassy addressed Amazon’s recent announcement that it would lay off 14,000 corporate employees, clarifying the move wasn’t financially motivated but rather aimed at removing bureaucratic layers and enabling faster innovation.
With AI transforming every part of Amazon’s business—from retail recommendations to cloud infrastructure—the behemoth is positioning itself to move more aggressively.
The combination of accelerating cloud growth, strong advertising momentum, raised capital expenditure (CapEx) guidance, and beat-and-raise financial results signals that Amazon is back on the offense.
For investors who’ve been waiting for proof that Amazon can compete in the AI era, this quarter delivered the evidence they needed.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
