Amazon ( (AMZN) ) has risen by 7.60%. Read on to learn why.
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Amazon’s stock has seen a notable increase of 7.60% this week, driven by impressive third-quarter earnings that exceeded market expectations. The company’s earnings per share of $1.95 surpassed analysts’ predictions, fueled by robust growth in its AWS cloud division and advertising business. This performance has reassured investors about Amazon’s strategic investments in AI and cloud infrastructure, which are beginning to yield significant returns.
Goldman Sachs has maintained a positive outlook on Amazon, raising its price target to $290. The firm highlighted Amazon’s strong fundamentals, particularly in its core e-commerce, cloud, and advertising sectors. The increasing demand for AI tools is expected to further boost AWS’s performance, while Amazon’s advertising unit continues to grow rapidly with high profit margins, contributing to the company’s overall earnings.
Analysts are optimistic about Amazon’s future, with many raising their price targets and maintaining a ‘Strong Buy’ rating. The company’s strategic focus on AI and cloud services, along with its efficient retail and delivery network, positions it well for continued growth. As Amazon continues to innovate and expand its offerings, investors are confident in its ability to sustain its upward trajectory in the stock market.