"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."
"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 gained 7.59% over the past five trading sessions and 4.81% the five prior, bringing year-to-date gain to 13.21% and a one-year increase of 27.35%. 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 was $33 billion and advertising revenue was $17.7 billion. Large AI capital expenditures remain a concern, but investor sentiment pushed the stock to its first record high since February 2025. Leaked plans to replace about 600,000 jobs with robots aim to lower per-item costs by 2027. AWS and emerging segments support expectations of surpassing $100 billion in operating income within two years, and a proprietary AI model named Nova is scheduled for a June launch to compete on advanced reasoning and price-efficiency.
Read at 24/7 Wall St.
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