Amazon shares climbed 10.4% in afternoon trading after the company reported third-quarter results that beat Wall Street expectations. The online retail and cloud computing giant posted net sales of $180.2 billion, up 13.4% from the previous year. Earnings per share reached $1.95, well above analyst forecasts.
Cloud Unit Powers Strong Quarter
Amazon Web Services (AWS) drove much of the positive momentum. The cloud computing division generated $33.01 billion in sales, growing 20% year over year. That marked the fastest growth rate for AWS since 2022. The acceleration in cloud sales reassured investors about demand for the company’s most profitable business segment.
According to Yahoo Finance, operating profit came in below estimates. But excluding two one-time charges, the metric would have beaten forecasts. The market appeared to understand this detail.
Advertising Revenue Also Rises
Amazon’s advertising business showed robust performance as well. Revenue in this segment increased 21.4% compared to the same quarter last year. The strong results across cloud computing and advertising highlighted healthy demand for the tech giant’s key services.
Stock Reaches New High
The gains pushed Amazon shares to $246.04, setting a new 52-week high. The stock is up 11.7% since the start of the year. Investors who bought shares five years ago have seen their investment grow 63.8%.
Amazon stock does not typically make large moves. The company has had only six single-day moves greater than 5% over the past year. The most recent significant drop came three weeks earlier. Shares fell 4.4% when President Trump announced plans for new tariffs on Chinese imports. That news sparked concerns about supply chain disruptions and rising costs.
The latest quarterly results eased those worries. Strong performance in AWS and advertising demonstrated the company’s ability to grow despite broader economic uncertainty. Investors responded by bidding shares sharply higher.
