Core Viewpoint - Amazon's optimistic profit outlook alleviated market concerns over excessive spending in the AI sector, leading to a rise in major U.S. stock indices [1] Financial Performance - Amazon reported a strong Q3 financial performance with a net profit of $21.187 billion, a year-on-year increase of 38% [1] - The diluted earnings per share were $1.95, surpassing market expectations of $1.57 [1] - The company's quarterly sales forecast exceeded market expectations, driven by the fastest growth in its cloud computing revenue in nearly three years [1] Cloud Business Insights - Amazon's core cloud business, AWS, achieved net sales of $33 billion in Q3, reflecting a 20% year-on-year growth, marking the fastest growth rate since 2022 [1] - CEO Andy Jassy noted strong and sustained demand in AI and core infrastructure, with a focus on capacity expansion [1] Analyst Target Price Adjustments - Following the earnings report, several investment banks raised their target prices for Amazon's stock: - Wedbush increased the target price from $280 to $330 per share [2] - JPMorgan raised the target price from $265 to $305 per share [2] - HSBC adjusted the target price from $260 to $285 per share [2] - Jefferies increased the target price from $265 to $275 per share [2]
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