Amazon(US:AMZN) Xin Lang Cai Jing·2025-10-31 16:19Core Viewpoint - Amazon's stock experienced its largest single-day increase in nearly three years, driven by double-digit growth in both cloud computing and retail businesses, marking the fifth consecutive quarter of exceeding revenue and profit expectations [1][2] Group 1: Financial Performance - Amazon reported a 16% year-over-year profit increase in Q3, primarily fueled by strong performances in online retail, subscription services, and Amazon Web Services (AWS) [1] - Online store revenue grew nearly 10% year-over-year, while third-party seller services net sales increased by 12%, both surpassing expectations [2] - The operating profit margin slightly declined due to a $2.5 billion provision related to a settlement with the Federal Trade Commission (FTC), but excluding this one-time impact, the operating margin would have expanded by 100 basis points to 6.9% [2] Group 2: Growth Drivers - Analysts noted that AWS and advertising businesses are key growth engines for Amazon, with AWS showing sustained growth potential driven by the in-house chip Trainium [2] - Amazon has doubled its cloud power capacity since 2022 and is expected to continue growing through 2027, positioning itself as the only major cloud provider without cloud computing capacity constraints [2] - The company's diversified business structure supports profit expansion, with a strong foundation for long-term profitability in the AI-driven cloud computing sector [1][2] Group 3: Market Position - Amazon is recognized as one of the few large tech companies benefiting from the long-term structural growth trend in global e-commerce, supported by a vast product selection and efficient delivery systems [2] - The company continues to expand its market share through successful products like Kindle, Prime Video, and Amazon Music, enhancing its competitive position [2] - Investment firm Seaport Research raised Amazon's target price from $250 to $290, reflecting confidence in its growth trajectory [1]