Amazon shares surged in after-hours trading after reporting strong third-quarter results. Revenue increased 13% to $180.17 billion, beating estimates. Earnings per share were $1.95, surpassing expectations. Operating income remained flat at $17.42 billion, missing forecasts due to special charges. Amazon Web Services revenue grew 20.2% to $33 billion, outpacing expectations. Operating margin for AWS was better than expected. The company expects strong fourth-quarter results, with net sales projected to increase 10% to 13%. Operating income is expected to be between $21 billion and $26 billion. AWS opened an $11 billion AI data center, Project Rainer, to support Anthropic’s AI model, Claude. Amazon plans to invest more in capex to support demand for AI and core services at AWS.

Read more at CNBC: We’re jacking up our price target on Amazon after its cloud unit surprises