Shares in Amazon (AMZN) stock have hit a new all-time high after the e-commerce giant’s latest earnings report beat forecasts. Amazon’s Q3 topped estimates, with earnings per share also coming in at $1.95, exceeding the $1.57 average estimate. AMZN climbed over 11% Friday after the earnings beat.
Amazon’s revenue and stock growth in not just Q3, but all of 2025 largely has AWS to thank. The company’s cloud computing unit, Amazon Web Services, was a big growth driver, with revenue climbing 20% from a year earlier. The unit generated operating income of $11.4 billion, accounting for roughly two-thirds of Amazon’s total operating profit. In addition, revenue in the digital advertising business, another growth engine, jumped 24% to $17.7 billion. Total sales at Amazon climbed 13% to $180.17 billion, topping the average analyst estimate of $177.8 billion.
Throughout the AI boom of 2025, Amazon has been a top investor, dedicating billions of dollars towards AI. Amazon raised its forecast for capital expenditures this year, saying it now expects to spend $125 billion in 2025, up from an earlier estimate of $118 billion. CFO Brian Olsavsky stated that the number is likely to increase in 2026, with a focus on AI.
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Wall Street praised AWS’s comeback, with analysts noting the earnings marked a potential turning point for Amazon. “There was definitely concern about AWS losing market share to Microsoft Azure and Google Cloud … But now AWS is aboard the train as well and they’re seeing a big revenue increase,” said Jed Ellerbroek, portfolio manager at Argent Capital, who raised his price forecast for AMZN stock.
At press time, Amazon (AMZN) is trading at an ATH of $245. Analysts maintain positive outlooks on Amazon with price targets ranging from $248 to $305, higher than the current market price of $245.86. Both Wedbush and Cantor Fitzgerald are setting a $280 target, showcasing strong historical price accuracy of AMZN stock.