Amazon Stock Price Forecast: AMZN Rockets 10.4% to $246.09 on $180.17B Revenue Beat

NASDAQ:AMZN — Amazon Surges 10.4% to $246.09 as Q3 Earnings Beat, AWS Reignites Growth, and $125B AI Expansion Plan Stuns Wall Street

Amazon.com Inc (NASDAQ:AMZN) exploded higher by 10.4% to $246.09, touching a fresh 52-week high of $250.50, after delivering a stunning Q3 2025 report that shattered expectations on every metric — revenue, profit, cloud growth, and capital investment guidance. The e-commerce and cloud giant’s market capitalization soared to $2.62 trillion, cementing its lead as one of the world’s largest companies by market value. Amazon’s earnings per share hit $1.95, easily surpassing the $1.57 consensus estimate, while quarterly revenue surged 13% year-over-year to $180.17 billion, topping projections of $177.8 billion. This quarter’s results reaffirm Amazon’s resurgence across all divisions — AWS, advertising, and retail — marking a return to high-margin growth driven by artificial intelligence infrastructure and cloud dominance.

AWS Dominance and AI Infrastructure Expansion Power the Turnaround

Amazon Web Services (AWS) once again proved the company’s profit engine, posting $33.01 billion in Q3 revenue, up 20% year-over-year, beating analyst expectations of $32.4 billion, and contributing nearly two-thirds of Amazon’s $11.4 billion operating income. This performance underscores AWS’s unshakable leadership even amid fierce competition from Microsoft Azure and Google Cloud. CEO Andy Jassy emphasized Amazon’s continued push into AI-driven infrastructure, revealing that AWS now operates over 500,000 Trainium2 chips in its new Project Rainier AI cluster, a system built to handle advanced model training workloads. The Trainium2 business grew 150% quarter-over-quarter, with adoption now representing a multi-billion-dollar revenue stream. While Microsoft (NASDAQ:MSFT) benefits from its OpenAI integration and Google (NASDAQ:GOOGL) from Gemini, Amazon has deepened its collaboration with Anthropic (ANTH.PVT), securing a deal to provide 1 million custom AI chips to the startup for model training.

Jassy called AWS “the backbone of global AI deployment,” signaling that the company will boost total capital expenditure to $125 billion by 2025, up from its previous $118 billion forecast, to meet soaring demand for data center capacity and advanced semiconductor infrastructure. This capital ramp-up cements AWS’s dominance in AI cloud delivery while widening its technological moat against rivals.

E-Commerce and Advertising Continue to Deliver Solid Momentum

Beyond cloud, Amazon’s retail and advertising segments demonstrated impressive operating leverage. Online retail revenue rose 13% year-over-year, supported by strong Prime Day results and record participation in Buy with Prime, while digital advertising surged 24% to $17.7 billion, outpacing expectations. Amazon’s ad network continues to rival that of Meta and Google, now commanding nearly 9% of global digital ad spend. The North America retail division generated $108 billion, while international operations rose to $36.5 billion, narrowing losses thanks to logistics automation and inventory optimization. Profitability metrics strengthened across the board — net income hit $4.06 billion, up 124% year-over-year, while operating margin expanded to 6.3% from 4.1% a year ago, showing Amazon’s efficiency gains amid AI-driven cost discipline.

Strategic Cost Discipline and Workforce Restructure Add Tailwind

Amazon’s ongoing restructuring initiatives have enhanced operating leverage. The company confirmed it has eliminated 14,000 corporate roles, primarily in redundant retail divisions, a move Jassy described as “efficiency-driven, not AI replacement.” This recalibration allows greater reinvestment into AWS and advertising, segments that now represent more than 70% of Amazon’s operating profit. The company’s improved cost profile helped free cash flow jump to $32.5 billion, its highest level in three years. Debt remains minimal with a debt-to-equity ratio of 0.37, and liquidity strong at $83 billion in cash equivalents, supporting Amazon’s aggressive capex strategy without straining its balance sheet.

Competitive Position: AWS vs. Microsoft Azure and Google Cloud

While Google Cloud grew 34% and Azure 29% in Q3, AWS’s scale advantage remains unmatched. The business maintains over 32% global cloud market share, compared with 22% for Microsoft and 11% for Google. Analysts note that Amazon’s integration of AI compute into existing enterprise contracts has solidified long-term customer retention. AWS now manages over 350,000 enterprise clients, with backlog orders estimated above $145 billion. Despite Microsoft’s dominance in AI partnerships via OpenAI, Amazon’s approach is broader, focusing on providing modular infrastructure for a wide variety of AI startups and sovereign clients. Its Anthropic collaboration positions AWS as a direct player in model training economics, not merely a platform provider.

AI Expansion: Amazon’s Multi-Layered Growth Strategy

AI remains at the center of Amazon’s long-term growth thesis. Beyond AWS infrastructure, Amazon has integrated generative AI tools into its retail and advertising ecosystems. The Q3 rollout of “AI Listings”, which uses machine learning to auto-generate product descriptions, is already improving seller conversion rates by 17%. In advertising, new AI-based targeting engines lifted cost-per-click efficiency by 11%, driving margin expansion. Amazon’s voice and device ecosystem — from Alexa to Echo — is being reengineered with proprietary AI models, an initiative internally referred to as “Project Olympus.” These system-wide AI deployments highlight why analysts increasingly label Amazon as one of the most misunderstood AI stocks on Wall Street, with multiple growth levers converging across commerce, cloud, and advertising.

Valuation and Price Targets Reflect Renewed Confidence

Following the Q3 print, major investment houses have revised their targets upward. Morgan Stanley raised its price target to $268, Goldman Sachs to $273, and Evercore ISI placed a bull-case target of $286, citing structural free cash flow acceleration through 2026. Amazon’s price-to-earnings ratio of 37.55 remains reasonable compared to peers, especially given expected FY2026 EPS growth above 40%. Operating cash flow per share is projected to rise 32% next year, driven by AWS backlog fulfillment and advertising mix expansion. The average analyst consensus across 45 firms now ranks NASDAQ:AMZN as a Strong Buy, with only two Holds and no Sells.

Stock Technicals and Market Setup

Technically, NASDAQ:AMZN trades in a strong bullish channel. The breakout above $245 confirms momentum continuation, with next resistance at $254.80 and support forming near $238.60. RSI remains elevated at 74, reflecting overbought but stable conditions, while MACD trendlines continue to widen positively. The 50-day moving average sits at $214, far below current levels, confirming a steep upward trajectory backed by strong volume. If Amazon holds above $240 in the next sessions, momentum algorithms are likely to trigger additional institutional inflows.

Risk Landscape: AI Spending, Competition, and Macro Exposure

The key risk for Amazon is executional — sustaining AI capital outlays above $120 billion while ensuring ROI within two fiscal years. Competitor AI data center buildouts by Microsoft and Google could pressure AWS margins temporarily. Retail exposure to discretionary spending remains vulnerable if U.S. consumer sentiment deteriorates, though Q4 holiday projections are trending solid. Regulatory scrutiny also lingers, particularly around marketplace practices and potential antitrust reviews targeting its Prime ecosystem. Nonetheless, these risks appear priced in relative to growth momentum.

Verdict on NASDAQ:AMZN

Based on consolidated Q3 performance, operating metrics, valuation trajectory, and AI expansion scale, NASDAQ:AMZN is rated a STRONG BUY, with a 12-month price target range of $268–$286. Amazon’s $180.17 billion revenue, $4.06 billion profit, and $125 billion AI infrastructure plan redefine its growth runway, making it one of the clearest beneficiaries of the ongoing global digital transformation. Investors can track real-time AMZN stock data here: Amazon Real-Time Chart. The stock’s current positioning combines structural growth with near-term technical momentum — a rare alignment in mega-cap tech.

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