Amazon came under the bull’s eye in Friday’s session, October 31, with the stock soaring 12.4% to a record high of $250 apiece on the Nasdaq, following a strong September-quarter earnings beat driven by robust growth in its cloud and advertising businesses.
The tech and online retail behemoth posted a 20% year-on-year jump in revenue from its closely watched cloud unit, Amazon Web Services (AWS), which rose to $33 billion, surpassing analysts’ estimates of $32.5 billion, as customers continued to spend on AI-related workloads.
Advertising services also remained a key growth driver, generating $17.7 billion during the quarter, well ahead of market expectations.
Looking at the other segments, the revenue from online store sales has also improved by 10% to $67.41 billion, while the revenue from third-party seller services stood at $42.5 billion, a 12% surge.
Overall, Amazon’s total revenue rose 12% year-on-year to $180.2 billion in Q3, contributing to a 10.87% increase over the last twelve months, with cumulative revenue reaching $670.04 billion.
On the earnings conference call with analysts, Jassy said the company has doubled AWS capacity measured by power from 2022 and is on track to double capacity again by 2027. “We continue to see strong demand in AI and core infrastructure, and we’ve been focused on accelerating capacity,” Amazon CEO Andy Jassy said in a press release.
