"Amazon.com Inc. posted robust cloud growth that reassured investors that the tens of billions of dollars the company and its peers are pouring into artificial intelligence will pay off. In the third quarter, Amazon Web Services generated $33 billion in revenue, a 20% increase from a year earlier, the company said in a statement on Thursday. The gain exceeded the 18% growth that analysts had expected and marked the biggest year-over-year rise since OpenAI's ChatGPT came on the scene in late 2022."
"Amazon's results came a day after investors punished Meta Platforms Inc. for projecting even greater spending in 2026. Unlike Microsoft and Google, Meta isn't a major cloud-computing provider to outside customers. That means its spending spree could be riskier. Amazon's shares jumped 12% to $249.42 as the markets opened in New York on Friday, the biggest intraday jump since April."
Amazon Web Services generated $33 billion in third-quarter revenue, a 20% year-over-year increase that exceeded the 18% analyst expectation and represented the largest annual rise since late 2022. The result underlines rising demand for AI compute and supports heavy data-center investment by major tech firms as capacity strains emerge. Amazon's stock jumped 12% to $249.42 at the open, the largest intraday gain since April. The company's performance trailed peers earlier in the year, with Microsoft's Azure growing nearly twice as fast and Google Cloud posting 33.5% growth. AWS showed accelerating growth and improved operating margin, reducing concerns about AI strategy.
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