Overview of Amazon’s Performance
In after-market trading on Thursday, shares of both Amazon and Apple saw a surge in their stock prices, as both companies exceeded market expectations. The strength of Amazon’s cloud business (AWS) and Apple’s iPhone sales drove these positive results.
AWS Revenue Growth
Amazon Web Services (AWS), the company’s cloud unit, reported a 20% increase in revenue during the third quarter compared to the same period last year, totaling $33.006 billion.
Amazon CEO Andy Jassy highlighted that “AWS is growing at a rate we haven’t seen since 2022,” with strong demand for AI infrastructure being one of the key drivers behind this growth.
Although AWS accounts for over 15% of Amazon’s total revenue, it generates around 60% of the company’s operating income.
Stock Performance and Financial Projections
Following the after-hours trading, Amazon’s stock price jumped 11%, boosting its market value by approximately $270 billion.
Amazon forecasted total net revenue between $206 billion and $213 billion for the final quarter of the year.
In addition to cloud growth, advertising sales also contributed to the positive results, with revenues increasing by 24% annually to $17.7 billion, surpassing market expectations.
However, the company reported a $1.8 billion restructuring charge, part of a plan to cut up to 30,000 jobs. Furthermore, Amazon raised its capital expenditure projection for the year, now expecting to spend $125 billion in 2025 compared to the previous estimate of $118 billion.
According to CFO Brian Olsavsky, this figure is likely to increase in 2026.
Overview of Apple’s Performance
Apple also surpassed market expectations with third-quarter revenues of $102.466 billion, surpassing the analyst consensus of $102.260 billion.
Although iPhone sales reached $49.025 billion, they were slightly below the analysts’ expectations of $50.190 billion.
Apple CEO Tim Cook anticipates revenue growth between 10% and 12% for the upcoming quarter, with iPhone sales expected to grow by double digits. The company projects iPhone sales of $75.910 billion and total revenue of $132.530 billion.
Following the release of its report, Apple’s stock price rose 4% in after-market trading.
Cook attributed the weaker-than-expected previous quarter to limited supply and delays in the launch of the iPhone Air in China, where sales dropped to $14.490 billion.
Key Questions and Answers
- What drove Amazon’s strong performance? The growth of AWS, driven by strong demand for AI infrastructure, and a 24% annual increase in advertising sales.
- How much did Amazon’s stock price increase? Amazon’s stock price rose 11% in after-market trading, boosting its market value by approximately $270 billion.
- What are Apple’s revenue projections for the upcoming quarter? Apple expects revenue growth between 10% and 12%, with iPhone sales projected to grow by double digits.
- What factors contributed to the weaker-than-expected previous quarter for Apple? Limited supply and delays in the launch of the iPhone Air in China.
