Why Amazon Surged 11.5% in November

Core Insights - Amazon's shares increased by 11.5% in November following a strong third-quarter earnings report, which exceeded analyst expectations [1][2] - The company reported a revenue growth of 11% to $158.9 billion and earnings per share of $1.43, with guidance for fourth-quarter growth between 7% and 11% [2] - Amazon Web Services (AWS) showed significant growth, with a revenue run-rate of $102 billion and a growth rate increase to 19%, alongside an expansion in operating margins from 30.3% to 38.1% [3][4] AWS Developments - The acceleration in AWS growth indicates a return to innovation among enterprises after previous cost-cutting measures, potentially linked to high-margin generative AI workloads [4] - AWS secured a five-year $475 million deal with IBM to provide Nvidia chips for AI training, enhancing its presence in large traditional enterprises [7] E-commerce Initiatives - Amazon launched "Haul," a new store offering items priced under $20, positioning itself against low-priced competitors like Shein and Temu [8][9] - The launch of "Haul" was positively received by investors, demonstrating Amazon's proactive approach to competition in the e-commerce space [9] Investor Sentiment - Despite previous concerns about Amazon lagging in artificial intelligence and competition from Chinese e-commerce entrants, recent developments have reassured investors [10]