Amazon surges on strong cloud business, U.S. sales
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Amazon released its earnings figures on Oct. 30. Photo: Michael Nagle/Bloomberg via Getty Images
Amazon shares surged after-hours Thursday after the company posted a stronger-than-expected quarter, powered by cloud growth and resilient North American sales.
Why it matters: The results underscore how Amazon's heavy bets on AI and faster fulfillment are paying off.
By the numbers: Total global sales were up 13% year-over-year to $180.2 billion.
- North America sales rose 11% to $106.3 billion.
- Cloud business Amazon Web Services (AWS) grew 20% to $33 billion — its fastest pace since 2022.
- Amazon shares rose 14% on the report, a significant bounce for a stock that has lagged its Magnificent 7 peers this year.
Driving the news: Amazon says it expanded same-day grocery delivery to 1,000-plus U.S. cities and plans to hit 2,300 by the end of 2025.
- The company increased rural access to same- and next-day delivery by 60% in just four months.
- Its new AI shopping assistant, Rufus, has reached 250 million users this year — and those shoppers are 60% more likely to buy, the Seattle-based retail giant said.
- Amazon rolled out "Help Me Decide" last week, an AI feature that uses browsing and shopping history to guide product choices.
What they're saying: "We continue to see strong momentum and growth across Amazon as AI drives meaningful improvements in every corner of our business," Amazon president and CEO Andy Jassy said in a statement.
- Jassy said the company continues see strong demand in AI and core infrastructure and "we've been focused on accelerating capacity — adding more than 3.8 gigawatts in the past 12 months."
- Jassy added another gigawatt is coming in Q4, with plans to double capacity again by 2027. He described power — not chips — as the main bottleneck right now, though he expects that to shift to chips.
- "But we're bringing in quite a bit of capacity, and as fast as we're bringing it in right now, we are monetizing," Jassy said.
State of play: Amazon will keep buying large quantities of Nvidia chips even as it pushes its own chips, Jassy said.
- "We have a very deep relationship with Nvidia. We have for a very long time, and we will, for as long as I can foresee the future," Jassy said.
What's next: Amazon is projecting Q4 sales of up to $213 billion, implying 10% to 13% year-over-year growth.
Editor's note: This story was updated with more information throughout.
