Amazon Stock Surges After Earnings Beat: Key Insights from AWS Growth

Amazon’s shares saw a significant rise in after-hours trading following a strong third-quarter earnings report. The e-commerce and cloud giant’s stock jumped over 9%, surpassing $244. This marked its first all-time high since early February.

The company reported earnings per share of $1.95, up from $1.43 a year ago, and exceeded analyst expectations. Additionally, revenue soared 13% year-over-year, reaching $180.2 billion. Particularly impressive was the performance of Amazon Web Services (AWS), which grew by 20% to $33 billion.

CEO Andy Jassy highlighted the company’s continuing momentum. He pointed out that advances in artificial intelligence (AI) are enhancing operations across various sectors. “We’re seeing strong demand in AI and core infrastructure, and we’re focused on accelerating capacity,” he said.

Looking ahead, Amazon anticipates fourth-quarter revenue in the range of $206 billion to $213 billion. Analysts had estimated around $208.66 billion.

Earlier this week, Amazon announced plans for what could be its largest job cuts in history, potentially laying off about 14,000 workers. This decision aligns with broader trends as companies in tech aim to cut costs amid substantial investments in AI infrastructure.

Interestingly, while Amazon’s stock rose recently, it’s worth noting that shares are up less than 2% for 2025 so far. Concerns about tariffs and slower growth in the cloud sector have created mixed feelings among investors.

Research shows that companies investing heavily in AI are likely to see further growth, but they also face challenges in workforce management. According to a recent report from Deloitte, over 80% of companies feel pressured to adapt to AI, leading to workforce reductions in many sectors. This push shows how rapidly technology is reshaping the business landscape.

For a deeper understanding of these trends, you can explore more insights from Deloitte’s latest reports here.

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