Amazon Shares Surge as Cloud Growth Exceeds Wall Street Expectations

Amazon Shares Surge as Cloud Growth Exceeds Expectations

Amazon’s stock price surged on Thursday after the company’s cloud division, Amazon Web Services (AWS), reported stronger-than-expected revenue growth for the third quarter of 2025. The company’s robust cloud performance reassured investors about its long-term growth strategy, pushing its shares up about 13% in after-hours trading.

According to Amazon’s quarterly report, AWS revenue jumped 20% year-over-year, surpassing Wall Street forecasts. The company projected fourth-quarter sales between $206 billion and $213 billion, signaling sustained momentum amid global economic uncertainty.

Amazon CEO Andy Jassy stated, “We’re seeing a pace of growth we haven’t experienced since 2022.” He highlighted rising demand for artificial intelligence (AI) tools and data infrastructure, which continue to power AWS’s expansion. The company is also increasing its capital spending to enhance cloud capacity and support AI-driven services for enterprise clients.

Beyond cloud computing, Amazon’s advertising segment delivered impressive results, posting over a 20% increase in revenue (about 22–23%) compared to last year. The company’s focus on AI-driven ad optimization and video streaming content placement has strengthened profitability across multiple divisions.

While Amazon’s e-commerce business remains under pressure due to global inflation and weaker consumer spending, the strong performance of AWS has provided a major financial cushion. Analysts noted that Amazon’s diversified revenue model, led by cloud and advertising, continues to protect it from market volatility.

Recently, AWS faced a temporary outage that disrupted several major websites and apps. However, the company quickly resolved the issue, confirming it was caused by a minor internal technical fault. Amazon said it is now investing further to bolster its infrastructure resilience and reliability.

Financial experts emphasized that AWS remains Amazon’s core profit engine. Although the cloud unit contributes only about 15% of total revenue, it accounts for nearly 60% of the company’s operating income. Chief Financial Officer Brian Olsavsky revealed that Amazon’s capital expenditures (CapEx) could reach $125 billion in 2025, largely driven by investment in cloud and AI infrastructure.

This performance reaffirms Amazon’s leadership in the global technology and cloud markets, especially as competitors like Microsoft Azure, Google Cloud, and Oracle ramp up their investments in AI and data centers.

Despite challenges such as global economic uncertainty and fierce competition, Amazon’s latest earnings report has restored investor confidence. Analysts predict the company could sustain strong momentum through 2026 as enterprise demand for cloud computing and AI services continues to grow rapidly.

In conclusion, Amazon’s record-breaking third-quarter results highlight the power of its cloud and AI-driven business model. The company’s focus on technological innovation and scalable infrastructure positions it to remain a dominant force in the digital economy — and a clear winner in the global “cloud race.”