Amazon Stock Surges on Strong Earnings and AI Opportunity

Amazon beat Q3 earnings estimates and stock surged over 7% due to bullish comments around AI from CEO Andy Jassy.

Jassy said AI represents a $10s of billions opportunity for Amazon Web Services and cited fast growth in generative AI.

AWS cloud growth of 12% yoy was enough to satisfy investors though slightly below expectations.

Operating margins increased showing Amazon's efficiency efforts are working; historically stock rises when margins increase.

Amazon expects robust Q4 growth with sales of $160B-$167B versus estimates of $166.57B.