After Jumping Double Digits, Is Amazon Stock a Buy?

Core Insights - Amazon possesses significant competitive advantages, particularly through its Amazon Web Services (AWS), which has a revenue run rate exceeding $100 billion [1] - The e-commerce segment has become a dominant force in North America and Europe, bolstered by complementary services like Marketplace and Prime membership [2] - The advertising business has emerged as the largest digital ad platform after Alphabet and Meta, driven by the success of its e-commerce model [3] Financial Performance - In Q3, Amazon's revenue increased by 13.4% to $180.2 billion, surpassing estimates of $177.76 billion, with growth across all segments: North America up 11% to $106.3 billion, international up 14% to $40.9 billion, and AWS up 20% to $33 billion [5] - Adjusted operating income rose by 25% to $21.7 billion, with GAAP earnings per share increasing from $1.43 to $1.95, exceeding the consensus estimate of $1.56 [6] - The company reported a $9.5 billion gain related to its investment in Anthropic, indicating strong profitability [6] Growth and Innovation - AWS is experiencing its fastest growth rate since 2022, highlighting a rebound in its cloud services [5] - Amazon's custom AI chip, Trainium, has seen a 150% quarter-over-quarter growth and is now a multi-billion-dollar business [7] - The company's investments in AI are yielding positive results, contributing to overall growth [8]