"It wasn't that long ago that some were starting to doubt Amazon (NASDAQ: AMZN). The company was losing ground to its closest competitors in the cloud computing infrastructure market, while tariffs threatened the profits of merchants on its e-commerce platform as well as its financial results. However, recent developments have given the stock a positive jolt. While Amazon hasn't completely resolved all its issues, the stock climbed to an all-time high following a strong quarterly update and a key move in the cloud industry."
"AWS sales growth in the quarter was higher than the segment's average over the past few years. As CEO Andy Jassy noted, that was the fastest pace it has recorded since 2022. Meanwhile, Amazon's net earnings per share came in at $1.95, about 36% higher than in the year-ago period. There was one business unit that grew even faster than AWS: advertising. The company's ad sales for the period totaled $17.7 billion, up 22% from the prior-year quarter."
Amazon's third-quarter sales grew 13% year over year to $180.2 billion, with all three core segments posting double-digit revenue growth. AWS revenue rose 20% to $33 billion, marking its fastest growth pace since 2022, while net earnings per share reached $1.95, about 36% higher year over year. Advertising revenue surged 22% to $17.7 billion, outpacing AWS growth. E-commerce remains the largest but lower-margin revenue source, so a growing mix of AWS and advertising should lift overall margins and sales growth. Earlier concerns included cloud competition and tariffs that threatened merchant profits.
Read at USA TODAY
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