Amazon’s stock jumped 12% on Friday after reporting strong third-quarter results and raising its capital spending forecast, fueled by surging demand for artificial intelligence and cloud services.
Revenue rose 13% year over year to $180.17 billion, beating analyst expectations of $177.8 billion, according to LSEG. Earnings per share hit $1.95, far above the $1.57 estimate.
Amazon shares soar 11% on strong cloud growth, easing investor fears over AI spending https://t.co/AVgkCshqFs pic.twitter.com/MY4KvbaiR5
— New York Post (@nypost) October 31, 2025
Amazon Web Services (AWS) led the performance, with sales up 20% to $33 billion, contributing two-thirds of the company’s operating profit. Its digital advertising revenue also surged 24% to $17.7 billion.
Amazon now expects to spend $125 billion in 2025, up from its earlier $118 billion estimate, and hinted at higher spending in 2026. Analysts praised the company’s “deep moat” and long-term AI potential.
However, the upbeat earnings were tempered by layoffs of 14,000 corporate employees, as Amazon aims to streamline operations and accelerate decision-making.
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TIPP Staff
