"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."
"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 fell 10.98% over the past five trading sessions, leaving the year-to-date gain at 1.06% and a one-year gain of 10.34%. Q3 results on Oct. 30 showed EPS of $1.95 versus an estimated $15.7 and revenue of $180.17 billion versus $177.80 billion estimated. AWS revenue reached $33 billion and advertising revenue was $17.7 billion. Large AI capital expenditures raise investor concerns despite a post-earnings rally to a record high. Leaked plans aim to replace about 600,000 jobs with robots, targeting a 30-cent per-item cost reduction by 2027. Amazon is developing a proprietary AI model named Nova and continues heavy robotics deployment.
Read at 24/7 Wall St.
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