"Amazon shares soared 10.81% on Friday after the company reported an across-the-board beat for the third quarter and boosted its forecast for spending due to demand for artificial intelligence services. Cloud was a major driver of revenue and profit growth, with sales at Amazon Web Services climbing 20% from a year earlier to $33 billion, topping expectations. The unit generated operating income of $11.4 billion, accounting for roughly two-thirds of Amazon's total operating profit."
"Revenue in the digital advertising business, another growth engine, jumped 24% to $17.7 billion. Total sales at Amazon climbed 13% to $180.17 billion, topping the average analyst estimate of $177.8 billion, according to LSEG. Earnings per share came in at $1.95, exceeding the $1.57 average estimate. "Amazon has a deep moat around their core businesses driven by their unmatched scale," analysts at Pivotal Research wrote in a note after the report."
Amazon shares jumped after a stronger-than-expected third-quarter performance and a higher spending forecast tied to AI demand. AWS sales rose 20% year-over-year to $33 billion and produced $11.4 billion in operating income, representing about two-thirds of Amazon's operating profit. Digital advertising revenue increased 24% to $17.7 billion. Total company sales grew 13% to $180.17 billion and earnings per share were $1.95 versus a $1.57 estimate. Analysts highlighted a deep competitive moat and organic growth opportunities in cloud and advertising. Google and Microsoft posted faster cloud growth, and Amazon raised its capital expenditure forecast to $125 billion this year.
Read at www.cnbc.com
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