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Amazon AWS growth accelerates with 39% revenue rise, boosting Amazon's strong profitability despite Q3 misses.

Company Fundamentals
31 Oct 2026, 00:17 WIB
Seeking Alpha
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Bullish
Amazon AWS growth accelerates with 39% revenue rise, boosting Amazon's strong profitability despite Q3 misses.

Amazon's AWS segment saw a 39% year-over-year revenue increase in Q3, with operating income up 55%, driving strong core profitability despite Amazon missing top and bottom line expectations. Overall operating income grew 61% year-over-year, outpacing revenue growth. While capital expenditures pressure free cash flow, they are justified by AWS's momentum and ambitious long-term targets, including a potential $1 trillion AWS revenue within a decade. Amazon's stock is currently valued at an 80% discount to its 5-year average forward P/E, making it historically cheap given its strong fundamentals and growth prospects.

Amazon's stock price on Pluang is USD 240.29 as of Oct 31, 2026, 04:02 WIB, showing a 1.44% decline in one day. The company holds a market cap of $2.64 trillion, reflecting its massive scale despite recent earnings misses. Investor interest remains strong with 66% of Pluang users buying Amazon shares and a typical hold time of 128 days.

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