"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. In July, the company deployed its 1 millionth robot while also deploying its new AI foundation model to power its robotic fleet."
"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. Scheduled for a June launch date, the model - named Nova - is intended to provide a price-efficient option over its competitors, including ChatGPT, Anthropic's Claude 3.7 Sonnet and Google's Gemini 2.0 Flash Thinking."
Shares of Amazon gained 1.58% over the past five trading sessions after a prior 3.46% rise, leaving year-to-date gains at 5.59% following an all-time high on Nov. 3, 2025. Q3 results beat estimates with EPS of $1.95 versus an estimated $15.7 and revenue of $180.17 versus $177.80 estimated; AWS revenue totaled $33 billion and advertising revenue totaled $17.7 billion. Concerns about large AI capital expenditures persist, yet bullish investor sentiment pushed the stock to its first record high since February 2025. Leaked plans aim to replace roughly 600,000 roles with robots, targeting a 30-cent per-item cost reduction by 2027, and one million robots have been deployed. AWS strength and emerging segments, plus the planned Nova AI model launching in June to compete with ChatGPT, underpin optimism about future operating income growth.
Read at 24/7 Wall St.
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