Core Insights - The company expects its full-year capital expenditure (capex) to be approximately $125 billion, with an anticipated increase in 2026 primarily directed towards AWS to support AI demand [1] - The company is also investing more in its in-house AI chips called Tranium, although this investment trails Microsoft's annual capex spend of $140 billion [1] - The CEO discussed a significant AI investment project named "Project Rainer," which involves collaboration with Anthropic [2]

The company beat top and bottom line estimates. Cloud revenue growth was up 20%. That was well above expectations and higher than last quarter's growth.Let's uh bring in CBC's Mackenzie Sagalas for the details. Mac. So Mel, Amazon stock trades on cloud.And that business is finally back in acceleration mode, writing rising at its fastest pace since 2022 and beating Wall Street's expectations with $33 billion in revenue. Now that's helping ease fears about Amazon losing big ticket AI deals to Google and Micro ...

Core Insights - The company exceeded both revenue and earnings expectations, with cloud revenue growth at 20%, surpassing previous quarter's growth [1][2] - Amazon's AWS business is experiencing its fastest growth since 2022, generating $33 billion in revenue, alleviating concerns about competition from Google and Microsoft in the AI sector [2] - The company is projected to achieve nearly $210 billion in revenue for Q4, marking its first-ever $200 billion quarter [3] Revenue Performance - AWS is driving significant revenue growth, with a backlog reaching $200 billion by the end of Q3, not including new unannounced deals from October [4] - Online store revenue is slowing down, but AWS performance is offsetting softer retail growth [3] Market Reaction - Following the positive earnings report and growth projections, the company's shares increased by approximately 13% [4]

Core Insights - Investors had concerns regarding Amazon Web Services (AWS) lagging in the AI sector, but a new growth trajectory has renewed confidence in Amazon's cloud business [1] Group 1 - AWS is experiencing a resurgence in growth, alleviating previous investor worries about its competitive position in AI [1] - The renewed growth trajectory indicates a positive shift in AWS's performance metrics, suggesting a strong recovery [1]

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Market Overview - Major market indexes experienced a mostly restful day, with the Dow down 109 points (-0.23%), S&P 500 down -0.99%, and Nasdaq down -1.57% [2] - The small-cap Russell 2000 dropped another -0.76%, now more than -2% down over the past five days [2] Earnings Reports - Apple reported record-high quarterly fiscal Q4 revenues of $102.5 billion, with earnings of $1.85 per share, outperforming estimates by 12 cents [4] - Amazon's Q3 earnings were $1.95 per share, exceeding expectations of $1.58, with revenues of $180.2 billion, a 13% year-over-year increase [5] - Twilio posted Q3 earnings of $1.25 per share, beating consensus by 20 cents, with sales of $1.3 billion, a 15% increase from the previous year [6] - Rocket Companies reported earnings of $0.07 per share, surpassing expectations of $0.04, with revenues of $1.78 billion [7] - Western Digital reported earnings of $1.78 per share, exceeding the expected $1.59, on revenues of $2.82 billion [8] Notable Company Developments - Apple declared a cash dividend of 26 cents per share and holds nearly $148 billion in cash and assets [4] - Amazon's AWS cloud business saw a 20% year-over-year growth, despite announcing significant layoffs of up to 30,000 employees [5] - Twilio announced the acquisition of Stytch, an ID platform for AI agents [6] - Rocket Companies acquired refi mortgage firm Mr Cooper, enhancing its service offerings for homebuyers [7] - Western Digital's revenue for the ongoing quarter is projected to be up by 20% at the mid-way point of fiscal Q2 [8]

Amazon reported its Q3 earnings after the bell on Thursday, beating on both the top and bottom line. But the big number Wall Street wanted to know about was AWS revenue. And thankfully for Amazon at least, it also beat there.Andy Jasse said growth is reacelerating for the segment, which grew 20% yearoveryear. also said that the company's tranium 2 chip business which it allows companies to use to develop their own AI models or otherwise deploy AI is now a multi-billion dollar business and that grew 150% qua ...

Core Insights - Amazon's cloud revenue experienced a significant increase, marking the fastest growth in nearly three years, which positively influenced the company's quarterly sales forecast and led to a 14% rise in share price during after-market trading [1][3] - The company anticipates higher capital expenditures next year, with full-year capital expenditures expected to reach around $125 billion, primarily driven by AI projects [3][6] Cloud Revenue Performance - Amazon Web Services (AWS) reported a 20% increase in revenue for the third quarter, surpassing estimates of 17.95%, despite a previous outage affecting many popular websites [4][12] - AWS contributes over 15% of Amazon's total revenue but accounts for approximately 60% of the company's total operating income, highlighting its role as a major profit driver [5][13] Market Reaction and Future Outlook - The surge in AWS revenue contributed to an increase in Amazon's market value by about $330 billion, with potential for the largest one-day percentage gain since 2015 if similar performance is seen in regular trading [3] - Amazon projected total net sales for the fourth quarter between $206 billion and $213 billion, slightly above analyst expectations of $208.12 billion [6] AI and Capital Expenditure Trends - The ongoing demand for AI software development is driving significant cloud spending, which is helping to mitigate slower growth in Amazon's e-commerce segment [2][10] - Other major tech companies, including Microsoft and Google, are also increasing their capital expenditures in AI, indicating a broader trend in the industry [9][10] Advertising Revenue Growth - Amazon's advertising sales rose by 24% year-over-year to $17.7 billion, reflecting the company's strategic focus on enhancing ad placements and exploring new advertising avenues [14] Workforce and Operational Changes - The company announced a $1.8 billion charge for severance costs due to a reduction of 14,000 corporate jobs, part of a broader plan that may lead to around 30,000 job losses [15][16] - The workforce reduction is described as a cultural adjustment rather than a financial necessity, aimed at streamlining operations [16]

Core Insights - Cloudflare (NYSE: NET) reported strong earnings, exceeding expectations, which led to an 8.1% increase in share price to $240.19 in after-hours trading [1] Company Performance - The earnings report was released after market close on Thursday, indicating a positive market reaction to the financial results [1] Market Reaction - Following the earnings announcement, Cloudflare's shares surged significantly, reflecting investor confidence and optimism about the company's future prospects [1]

Financial Data and Key Metrics Changes - The company reported revenue of $180.2 billion for Q3 2025, representing a 12% year-over-year increase, excluding foreign exchange impacts [6][25] - Operating income was $17.4 billion, which would have exceeded $21 billion without two special expenses totaling $4.3 billion [6][26] - Trailing 12-month free cash flow stood at $14.8 billion [6] Business Line Data and Key Metrics Changes - AWS revenue reached $33 billion, growing 20.2% year-over-year, marking the largest growth rate in 11 quarters [6][30] - North America segment revenue was $106.3 billion, an 11% increase year-over-year, while the International segment revenue was $40.9 billion, up 10% year-over-year [26] - Worldwide paid units grew by 11% year-over-year, with third-party seller unit mix increasing to 62% [27] Market Data and Key Metrics Changes - AWS backlog grew to $200 billion by the end of Q3, not including unannounced deals in October [8] - Amazon Ads generated $17.6 billion in revenue, growing 22% year-over-year [19][30] Company Strategy and Development Direction - The company is focused on expanding its AWS capabilities, particularly in AI and core services, with significant investments in infrastructure and custom silicon [15][32] - The grocery business is evolving with a strong emphasis on perishables and same-day delivery, aiming to change consumer habits [56] - The company is committed to enhancing its advertising offerings and leveraging partnerships to expand its reach [21][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in AWS's growth trajectory, citing strong demand for AI workloads and infrastructure [6][31] - The company is preparing for the peak holiday season, emphasizing its commitment to customer experience [33] - Management acknowledged the importance of maintaining a lean organizational structure to foster innovation and speed [57] Other Important Information - The company has invested over $4 billion to expand its rural delivery network, increasing access to same-day and next-day delivery [18] - The introduction of AI-powered tools like Rufus and AgentCore is expected to enhance customer engagement and streamline operations [19][74] Q&A Session Summary Question: AWS capacity levels and Trainium demand - Management highlighted significant capacity additions, with 3.8 GW added in the last year and expectations to double capacity by 2027 [37] Question: Trainium positioning versus third-party chips - Management emphasized the importance of multiple chip options and the competitive advantages of Trainium in terms of price performance [43][45] Question: Project Rainier architecture and differentiation - Management described Project Rainier as a large-scale infrastructure feat that leverages Trainium chips for enhanced performance [49] Question: Grocery business and perishable delivery - Management noted that the grocery business has surpassed $100 billion in gross merchandising sales, with a focus on same-day delivery for perishables [52][56] Question: Future headcount and AI efficiencies - Management clarified that recent headcount changes were driven by cultural considerations rather than financial or AI efficiencies [57] Question: Robotics and automation opportunities - Management confirmed ongoing investments in robotics to improve safety, productivity, and customer experience [61][62] Question: Agentic commerce and customer service - Management expressed excitement about the potential of agentic commerce to enhance the online shopping experience [65][68] Question: AWS growth drivers and advertising contributions - Management indicated that both core infrastructure and AI workloads are driving AWS growth, with strong performance across advertising offerings [72][78]