Amazon continues to demonstrate why it ranks among the world’s most valuable corporations, with its shares maintaining impressive momentum following unexpectedly robust quarterly results. The company’s upward trajectory is being propelled by a surprising acceleration in its cloud computing division and substantial artificial intelligence investments. Market observers are now questioning whether this positive trend can withstand intense competition from Microsoft and Google.
Strategic Investments and Competitive Positioning
Amazon’s response to the competitive landscape has been decisive: a massive capital expenditure offensive. Infrastructure spending skyrocketed by 81 percent, with additional increases planned for 2025. The cloud market remains fiercely contested, with Microsoft Azure expanding at 33% and Google Cloud growing at 35%, both outpacing Amazon’s growth rates despite its recent improvements.
The company’s advertising division delivered equally impressive results, matching Meta’s 19 percent growth rate while surpassing Google’s performance. Even Amazon’s traditional retail operations demonstrated resilience, with North American operations generating $5.7 billion in operating profit—a substantial year-over-year increase.
Cloud Services Resurgence and Drone Delivery Milestones
Amazon Web Services delivered the quarter’s most significant surprise, posting a 19 percent growth surge—its strongest expansion since 2022. Cloud chief Andy Jassy highlighted “renewed momentum” directly reflected in the financial metrics: the segment’s operating profit leaped to $10.4 billion, contributing approximately 60 percent to Amazon’s overall earnings.
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Beyond its core businesses, Amazon achieved regulatory breakthroughs in drone technology. The Federal Aviation Administration granted approval for the new MK30 drone, authorizing operations beyond visual line of sight for the first time. In Phoenix’s West Valley, these aircraft are already delivering packages in under sixty minutes, fully integrated into the company’s logistics network.
Future Outlook: Artificial Intelligence Focus
For the final quarter, Amazon projects growth between 7 and 11 percent—slightly below expectations, yet management confidence remains unwavering. The company’s shares currently trade at €217.20, having accumulated an impressive 43 percent gain since April.
Amazon’s strategic direction is unmistakable: the company is placing enormous bets on artificial intelligence and cloud computing while maintaining stable performance in its core operations. The critical question remains whether these multibillion-dollar investments will secure Amazon’s leadership in the artificial intelligence race—or if competitors will ultimately prove faster to market.
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