Amazon (AMZN) Defies Skeptics with Strong Q3 Performance, AWS Rebound Fuels Optimism
Amazon's third-quarter earnings report delivered a decisive rebuttal to market skeptics, with shares surging nearly 10% following better-than-expected results. The resurgence of AWS growth and stable retail performance silenced concerns about structural decline, proving capacity investments can drive efficient top-line expansion.
The cloud computing division's rebound marks a pivotal moment for Amazon's AI ambitions. After trailing in the 2025 AI race, AWS's performance suggests the company may be regaining competitive footing. This operational inflection point justifies a market re-rating, reinforcing bullish sentiment among analysts.
While year-to-date gains of 11% still lag the S&P 500, Amazon demonstrated its hallmark ability to convert infrastructure spending into revenue growth. The results validate management's long-term strategy during what remains the largest investment cycle in company history.
