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Amazon, Inc. (NASDAQ:AMZN) shares are trading higher Friday after the company reported third quarter results above estimates. AMZN shares are testing new highs. Check the analyst take here. What To Know: Amazon reported earnings per share of $1.95, beating the consensus estimate of $1.57. In addition, the company reported sales of $180.16 billion, beating the consensus estimate of $177.75 billion. Amazon Web Services led the company's growth with a 20% year-over-year increase in sales to $33 billion, as enterprises continued adopting its AI and cloud infrastructure offerings. North America sales rose 11% to $106.3 billion, while international revenue grew 14% to $40.9 billion. CEO Andy Jassy said AI is driving "meaningful improvements in every corner" of the business, with AWS "growing at a pace we haven't seen since 2022." Amazon has added 3.8 gigawatts of new capacity over the past year and rolled out multiple new AI products, including its Trainium2 chip, Project Rainier compute cluster, and expanded Bedrock and EC2 offerings. The company also highlighted growth in its AI-powered retail and advertising tools, which it says are improving customer experience and seller engagement. Outlook: The company sees fourth quarter sales of $206.00 billion to $213.00 billion, versus the consensus estimate of $208.12 billion. Analyst Changes: Following the earnings report, multiple analysts issued price target updates. Cantor Fitzgerald analyst Deepak Mathivanan maintained a Overweight rating on Amazon and raised the price target from $280 to $315. DA Davidson analyst Gil Luria maintained a Buy rating on Amazon and raised the price target from $265 to $300. Keybanc analyst Justin Patterson maintained an Overweight rating on Amazon and raised the price target from $300 to $303. Evercore ISI Group analyst Mark Mahaney maintained an Outperform rating on Amazon and raised the price target from $280 to $335. Rosenblatt analyst Barton Crockett maintained a Buy rating on Amazon and raised the price target from $297 to $305. Related Link: Kalshi’s Trojan Horse: How The Prediction Market Leader Is Inching Further Into DeFi AMZN Price Action: At the time of writing, Amazon shares are trading 10.40% higher at $246.03, according to data from Benzinga Pro. Image via Shutterstock
