Amazon Shares Surge Over 6% After Strong Q3 Earnings

New Delhi: Amazon Inc. shares climbed over 6 per cent on Friday, following the release of better-than-expected results for its third quarter. The stock rose to $198.12 per share as of 1:50 p.m. (EDT) from its previous close of $186.40 on Thursday.The e-commerce giant posted an 11 per cent increase in revenue to $158.9 billion for the quarter ending September 30, compared to the same period last year. Net profits also saw a boost, reaching $15.3 billion, according to AFP.Amazon Web Services (AWS), Amazon’s cloud computing branch, maintained its growth with a 19 per cent rise in sales year-over-year, totaling $27.5 billion. AWS's growth comes amid stiff competition from Microsoft and Google, as all three tech giants continue to invest in AI, particularly by expanding data centers and computing power to support AI for cloud clients.The company’s international segment swung to an operating profit of $1.3 billion, a turnaround from a minor loss in the same quarter last year. In North America, operating profits increased from $4.3 billion to $5.7 billion.Amazon's advertising business also recorded growth, with sales up by 19 per cent, capturing a bigger share of revenue on its platform.As the holiday season nears, CEO Andy Jassy expressed enthusiasm about Amazon’s lineup for shoppers. “With the holiday season approaching, we’re excited about what we’ve prepared for customers,” Jassy said. He highlighted the success of Prime Big Deal Days and strong demand for Amazon’s latest Kindle models.

Amazon’s push into healthcare services also advanced, as the company expanded its Amazon Pharmacy Same-Day Delivery service to cover nearly half of the U.S., underscoring a commitment to healthcare despite some skepticism from investors.Looking ahead, Amazon raised its revenue forecast by 7 per cent to 11 per cent, anticipating sales between $181.5 billion and $188.5 billion in the next quarter compared to last year.( Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. Times Now Digital suggests its readers/audience to consult their financial advisors before making any money-related decisions.)