Amazon shares surged 12.4% to a record high of $250 per share on the Nasdaq during Friday’s session, October 31, after the tech giant reported robust September-quarter earnings, powered by strong performance in its cloud and advertising divisions.
Q3 Performance Highlights
Amazon Web Services (AWS), the company’s cloud arm, delivered a 20% year-on-year (YoY) jump in revenue to $33 billion, surpassing analysts’ expectations of $32.5 billion. The growth was driven by increased spending on AI-related workloads as enterprises continued their digital transformation investments.
The advertising segment was another standout performer, generating $17.7 billion in revenue during the quarter—well above market forecasts.
Meanwhile, online store sales climbed 10% YoY to $67.41 billion, and third-party seller services revenue rose 12% to $42.5 billion, underscoring strong consumer demand across key markets.
Overall, Amazon’s total revenue increased 12% YoY to $180.2 billion in Q3, pushing its trailing twelve-month revenue to $670.04 billion, reflecting a steady 10.87% annual growth.
Outlook and Future Plans
Riding on its strong quarterly results, Amazon raised its full-year sales guidance, projecting Q4 revenue between $206 billion and $213 billion, compared with the average market estimate of $208.4 billion.
On the earnings call, CEO Andy Jassy said the company has doubled AWS capacity (measured by power) since 2022 and aims to double it again by 2027, citing “continued strong demand in AI and core infrastructure.”
In line with its long-term AI ambitions, Amazon plans to ramp up capital expenditures to $125 billion for 2025, and expects further increases next year, aligning with other Big Tech peers investing heavily in AI infrastructure.
Stock Performance
If Amazon’s stock closes above $241 per share, it would mark its first record close in nearly nine months. The recent surge lifted its October gains to 13%, representing a 53% recovery from its April 2025 low of $161.38.
Year to date, Amazon shares have climbed 13%, putting the company on track to secure its third consecutive annual gain.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Investors are advised to conduct their own research or consult financial experts before making investment decisions.
