Amazon.com Inc. (AMZN) reported third-quarter 2025 adjusted earnings of $1.95 per share, beating estimates and showing growth from the previous year. Revenues reached $180.17 billion, driven by strong performance in Prime and AWS. AWS contributed $33.01 billion, online sales rose 9.8%, and advertising revenues increased by 23.5%.

CEO Andy Jassy highlighted the impressive growth of AWS, with the company adding more than 3.8 gigawatts in capacity in the past year. The stock price of AMZN jumped 13.1% in after-market trading following the earnings report. Amazon is heavily investing in AI applications, with a $8 billion investment in Anthropic and the introduction of various chatbots and AI services.

Amazon Prime Video added live sports content and new NBA broadcasts to deepen engagement and drive growth. The company also provided strong guidance for the fourth quarter of 2025, estimating sales in the range of $206-213 billion. The Zacks Consensus Estimate for EPS is $1.91, reflecting positive growth expectations for AMZN.

Despite underperforming this year, analysts see a potential upside of 20.6% to 36.9% for AMZN stock. The company’s strong AI initiatives and growth prospects position it for long-term success. With a Zacks Rank #2 (Buy), Amazon remains a key player in the e-commerce and tech industry.

Read more at Nasdaq: Buy AMZN Amid Solid Q3 Earnings Driven by Extensive AI Applications