Yahoo Finance·2025-12-30 12:30Amazon Overview - Amazon's retail division is experiencing smooth scaling, with North America revenue increasing by 11% YoY and overseas revenue by 10%, alongside a paid unit growth of 11% [1] - Advertising income rose by 22% YoY to $17.7 billion, benefiting from Amazon's ad ecosystem and new partnerships [1] AWS Performance - AWS revenue increased by 20.2% YoY to $33 billion in the latest quarter, marking the fastest growth in 11 quarters, with an annualized run rate of $132 billion [3] - AWS backlog reached $200 billion, indicating strong future demand [3] - AWS operational income rose to $11.4 billion, reflecting scale and efficiency [3] AI and Cloud Investments - Amazon is investing heavily to meet AI-driven cloud demand, adding over 3.8 gigawatts of electrical capacity in the last 12 months, tripling its footprint since 2022 [2] - Custom silicon, such as Trainium, has expanded by 150% quarter-over-quarter, becoming a multibillion-dollar business [2] Financial Performance - Total revenue for the quarter was $180.2 billion, up 12% YoY, with adjusted earnings increasing by 36.4% to $1.95 per share [6] - Trailing twelve-month free cash flow increased to $14.8 billion, indicating improved cash generation [6] - Amazon plans to spend approximately $125 billion on capital expenditures in 2025, primarily for AI, cloud infrastructure, and logistics [6] Future Outlook - Analysts expect Amazon's earnings to grow by 29.6% in 2025 and 9.5% in 2026, supported by AWS growth and strong core businesses [7] - Amazon's stock is rated a "Strong Buy" by 49 out of 56 analysts, with an average target price of $295.80, suggesting a potential upside of 27% [8]