"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."
"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."
Amazon's shares recovered 2.80% over the past five trading sessions after a prior 10.98% decline, leaving a 4.29% year-to-date gain and a 14.01% one-year increase. Q3 results on Oct. 30 beat estimates with EPS of $1.95 versus an estimated $15.7 and revenue of $180.17 billion versus $177.80 estimated, with AWS revenue at $33 billion and advertising revenue at $17.7 billion. The company faces scrutiny over large AI capital expenditures and leaked plans to replace roughly 600,000 jobs with robots, while deploying its 1 millionth robot and launching an AI model, Nova, aimed at price-efficient competition.
Read at 24/7 Wall St.
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