"Shares of Amazon.com Inc. (NASDAQ: AMZN) gained 3.48% over the past five trading sessions after gaining 2.80% the five prior. That brings the stock's year-to-date gain to just 6.45% as the AI-induced sell-off that began in late October carried into late November before Amazon was able to stop the losses. Over the past year, AMZN is up 11.25%. When the company reported Q3 earnings on Oct. 30, it beat on the top and bottom lines, with EPS of $1.95 vs. an estimated $15.7, and revenue of $180.17 vs. $177.80 estimated."
"Meanwhile, revenue from Amazon Web Services was $33 billion and revenue from advertising was $17.7 billion. Concerns about the company's enormous AI CapEx remain, but after the Q3 earnings call, the stock was rewarded by bullish investor sentiment, hitting its first record high since February 2025. In October, leaked documents revealed that the company is aiming to replace around 600,000 Amazon jobs with robots, with the management team estimating that the effort could trim 30 cents off each item purchased via the e-commerce giant by 2027."
"While certain business segments like smart home devices are lagging, others - namely AWS - are likely to contribute to the company being able to surpass $100 billion in operating income with the next two years. Emerging business segments add to that optimism. Amazon's recently announced plan to launch a proprietary AI model with advanced reasoning capabilities is set to compete with OpenAI's ChatGPT."
Amazon shares recovered with a 3.48% gain over the latest five trading sessions and a 6.45% year-to-date gain; AMZN is up 11.25% over the past year. Q3 results beat estimates with EPS of $1.95 and revenue of $180.17 versus $177.80 estimated. AWS revenue totaled $33 billion and advertising revenue reached $17.7 billion. Concerns over large AI capital expenditures persist, but bullish investor sentiment pushed the stock to a record high since February 2025. Leaked plans to replace about 600,000 jobs with robots could cut per-item costs by $0.30 by 2027. The company deployed its one millionth robot and plans to launch Nova, a proprietary, price-efficient AI model to compete with ChatGPT.
Read at 24/7 Wall St.
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