Amazon.com, Inc. (AMZN) reported a significant surge in its stock price, climbing nearly 25% following a strong quarterly earnings report. The growth of its Amazon Web Services (AWS) division accelerated, contributing to a $25 billion annualized revenue run rate from its custom AI chip business. The Zacks Consensus Estimate for AMZN’s earnings next year was revised upwards by 47.6% to $13.06 per share.
The company forecasts a 15.7% sales increase this year and an additional 14% next year, with expected annual earnings per share (EPS) growth of 18.7% in the long term. Currently, AMZN trades at 20.8 times forward earnings, a valuation seen as attractive relative to its growth potential. Analysts indicate that a breakout above the $280 level could signal further bullish momentum for the stock.
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