Amazon’s share price surged over 10% after it announced robust quarterly earnings, with sales climbing 13% to $180.2 billion and net income rising to $21.2 billion. Key to this growth was the booming demand for its Amazon Web Services (AWS), which saw a 20% revenue increase, reaching $33 billion, attributed largely to AI developments. The company forecasts fourth-quarter sales between $206 billion and $213 billion, signaling continued momentum. Despite flat operating income at $17.4 billion due to significant charges, including legal settlements and workforce reduction of 14,000 positions, Amazon is heavily investing in AI infrastructure, increasing property and equipment purchases by $50.9 billion and boosting power capacity for AI operations. The push into AI, crucial for maintaining competitive edge, has become a central focus for tech giants. Amazon’s proactive measures highlight its commitment to AI while navigating regulatory challenges. Post-announcement, its stock rose by 11% in after-hours trading.
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