On Friday, Amazon's shares experienced their most significant single-day surge in nearly three years, propelled by double-digit growth in both its cloud computing and retail sectors. The company reported better-than-anticipated revenue and profit figures for the fifth consecutive quarter, with a notable 16% year-over-year increase in third-quarter profit. Analyst Ahan Vashi observed that Amazon effortlessly outperformed heightened expectations, with robust performances from both of its key business segments. Provided that the macroeconomic landscape remains robust, this growth trajectory is anticipated to persist. Investment firm Seaport Research elevated its target price, underscoring Amazon's immense growth potential in the AI-driven cloud computing arena. Wall Street analysts lauded its performance as "remarkable," with AWS (Amazon Web Services) leading the pack in growth rate and standing out as the sole hyperscale cloud provider unhindered by cloud computing capacity constraints. The retail division also showcased strong performance, with numerous revenue indicators surpassing forecasts. Despite a slight dip in the quarterly operating profit margin, this was primarily attributable to a $2.5 billion settlement provision. Excluding this one-time expense, the operating profit margin would have witnessed an expansion.
