Amazon Stock Surges After Third-Quarter Earnings Beat Expectations

Amazon shares jumped more than 9% in extended trading today after the company reported third-quarter earnings and revenue that significantly exceeded analyst forecasts, fueled by strong growth in its cloud business.

The e-commerce and cloud computing giant reported earnings per share of $1.95, an increase from $1.43 during the same period last year, and surpassing the Visible Alpha consensus estimate. Revenue climbed 13% year-over-year to $180.2 billion, with Amazon Web Services (AWS) sales jumping 20% to $33 billion. This positive performance signals a potential turning point for the tech giant, which has faced headwinds earlier in the year.

“We continue to see strong momentum and growth across Amazon as AI drives meaningful improvements in every corner of our business,” said Amazon CEO Andy Jassy. “We’ve been focused on accelerating capacity,” he added, noting “strong demand in AI and core infrastructure.” Amazon’s increasing investment in Amazon Web Services is a key component of its overall strategy. Earlier this week, the company announced plans to reduce its workforce by approximately 14,000 employees through layoffs and hiring adjustments, as many tech companies prioritize investments in artificial intelligence. You can learn more about the broader tech layoff trend here.

Looking ahead, Amazon anticipates fourth-quarter revenue between $206 billion and $213 billion, aligning with the analyst estimate of $208.66 billion. Shares reached over $244 after hours, marking their first all-time high since early February.

Company officials stated they will continue to monitor economic conditions and adjust investments accordingly.