Amazon's stock jumped sharply after the company reported a 20% increase in quarterly revenue, reaching $200.6 billion. Cloud division AWS led the charge with a 37% sales rise, marking its fastest growth in over four years.
The company's North American sales climbed 16% to $116.2 billion, while international revenue and AWS each hit $42.2 billion. Advertising also contributed with a 26% revenue increase, signaling Amazon's diversification beyond retail and cloud services.
Profit and Investment Highlights
Operating income rose to $27.5 billion, powered by AWS profit hitting $16.6 billion. Net income soared to $62.6 billion, driven largely by a massive $53.4 billion pre-tax gain from investments, mainly in AI startup Anthropic.
Despite strong cash flow growth, free cash flow turned negative at $7.6 billion due to heavy spending on infrastructure, including data centers, chips, and AI services. This investment supports AWS's accelerating expansion but weighs on short-term liquidity.
Amazon shares climbed 3.9% during regular trading to $235.50 and continued surging 6.4% to $250.49 in after-hours action, reflecting investor enthusiasm for the company's broad growth across retail, advertising, cloud, and AI.
This material is for informational purposes only and does not constitute financial advice.
