Swisscom profit drops 23% as Vodafone Italia costs weigh on results
Investing.com - Evercore ISI raised its price target on Amazon.com (NASDAQ:AMZN) to $335.00 from $280.00 on Friday, while maintaining an Outperform rating following the company’s third-quarter earnings results. This target aligns with the broader analyst consensus, as InvestingPro data shows analysts maintain a strong "Buy" recommendation with a high price target of $306.
Amazon reported revenue of $180 billion, up 12% year-over-year excluding foreign exchange impacts, exceeding analyst expectations by more than 1%. Operating income reached $21.7 billion excluding one-time items, representing a record-high 12% margin and coming in 12% higher than Wall Street forecasts. This performance contributes to Amazon’s impressive $670 billion in revenue over the last twelve months, with a healthy gross profit margin of 49.6%.
AWS, Amazon’s cloud computing division, showed significant improvement with 20% year-over-year growth, its fastest pace in 11 quarters. The company’s cloud backlog reached $200 billion, with deal volume in October exceeding the entire third quarter, while Trainium2 revenue grew 150% quarter-over-quarter. This cloud momentum has helped Amazon achieve a 15% return on invested capital, according to InvestingPro, which identifies Amazon as a "prominent player in the Broadline Retail industry" with "high return over the last decade."
The retail business maintained double-digit percentage revenue growth in both North America and International segments, with operating margins improving year-over-year in both divisions. Perishable Checkout is expanding to 2,300 locations by year-end, while the Rufus feature has added $10 billion in sales.
Amazon’s advertising revenue grew 22% year-over-year excluding foreign exchange impacts, with NBA on Prime generating double-digit percentage growth in viewing compared to cable television broadcasts. With a market capitalization of $2.38 trillion and an overall financial health score rated as "GREAT" by InvestingPro, Amazon continues to demonstrate strong fundamentals. For deeper insights into Amazon’s valuation and growth prospects, access the comprehensive Pro Research Report available for this tech giant and 1,400+ other top stocks.
In other recent news, Amazon reported its third-quarter 2025 earnings, showcasing an earnings per share (EPS) of $1.95, which surpassed the forecasted $1.56. The company’s revenue reached $180.2 billion, slightly exceeding the anticipated $177.75 billion. Notably, Amazon’s AWS cloud division demonstrated significant improvement, with growth accelerating approximately 270 basis points quarter-over-quarter to over 20%, marking its highest growth rate in eleven quarters. Following these results, Canaccord Genuity raised its price target for Amazon to $300, maintaining a Buy rating. Goldman Sachs also reiterated its Buy rating, increasing its price target from $275 to $290, citing Amazon’s potential for strong compounded revenue growth and operating margin expansion over the coming years. These developments highlight the company’s ongoing efforts to invest in long-term growth initiatives.
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