New York Postยท2025-10-31 15:29Core Insights - Amazon's shares surged approximately 11% to a record high following the announcement of its strongest cloud growth since 2022, alleviating investor concerns about overspending on AI by major tech firms [1][4][12] - The tech-heavy Nasdaq index rose by 1.2%, while the S&P 500 and Dow Jones increased by 0.6% and 0.3%, respectively, indicating a positive market trend [1][3] Amazon's Performance - Amazon reported a 20.2% increase in revenue for its cloud unit in the most recent quarter, surpassing Wall Street's expectations of 18.1% [4] - The company achieved earnings per share of $1.95, exceeding estimates of $1.57, and total revenue of $180.17 billion, which was above the expected $177.8 billion [5] - For the current quarter, Amazon anticipates sales between $206 billion and $213 billion, exceeding analyst expectations [6] - The expected operating income for the current quarter is projected to be between $21 billion and $26 billion, compared to estimates of $23.8 billion [7] Capital Expenditures and Job Cuts - Amazon has increased its planned capital expenditures for 2025 to $125 billion from $118 billion, with intentions to spend even more in the following year [9][8] - The company is also implementing significant cost-cutting measures, including a round of 14,000 job cuts, with a total of 30,000 corporate jobs, or about 9% of its global office workforce, planned to be eliminated [12][13] Market Context - Major stock indexes are on track to end the week higher, with the Dow and Nasdaq poised for their longest streaks of monthly gains since January 2018 [3][4] - Other tech giants, such as Meta and Microsoft, experienced declines in their stock prices due to announced increases in capital expenditures for AI [2]