Amazon Shares Jump 14% After Company’s Cloud Growth Beats Estimates

October 31, 2025: Amazon share price surged 14% in after-hours trading as a result of its strong financial performance. The company said its cloud division saw the highest growth in the last three years. It was driven by strong demand for AI services worldwide. Furthermore, Amazon Web Services (AWS) reported a 20% year-on-year rise in revenue for the September quarter, above market expectations of 17.95%.

The growth in its cloud performance allowed Amazon to project its quarterly sales to be between $206 billion and $213 billion for the upcoming quarter, higher than the $208.12 billion expected by analysts. The company also said that it is planning to increase its capital expenditure in the next fiscal to help strengthen its AI and cloud infrastructure.

Capital Investment and Market Impact

Amazon’s Chief Executive Officer Andy Jassy said that the company’s AWS segment is growing at a fast pace starting in 2022. Chief Financial Officer Brian Olsavsky said that the company’s full-year capital spending is expected to reach around $125 billion, up from $89.9 billion which the company has already invested in the first three quarters of FY25.

This comes after other companies such as Microsoft Azure and Google Cloud also reported strong growth in their cloud business, along with strong financials. Furthermore, companies such as Meta have also announced that they will invest more money to establish data centers and manufacture AI chips.

Advertising Business Also Sees Growth

Apart from the cloud business, Amazon also reported a 24% year-on-year increase to $17.7 billion in its advertising business. It said that the growth in its advertising business was driven by new ad placements and sponsored listings across electronic devices and retail outlets.

Outlook Ahead For Amazon

Growth in the cloud business is good news for Amazon and its investors. Although the AWS segment only contributes 15% to the total revenue of Amazon, it makes up for 60% of the total operating income of Amazon. Although the overall financial performance was strong, they were dragged down by a $25 billion fine it settled with the Federal Trade Commission. The fine was for the allegations that Amazon tricked its customers to purchase their prime membership.

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