“`html
Amazon’s Strong Q3 Performance Highlights
Amazon’s cloud computing segment, Amazon Web Services (AWS), reported a revenue increase of 20.2% year-over-year to reach $33 billion in Q3 of fiscal 2025. AWS is currently operating at an annualized run rate of $132 billion and has a backlog of $200 billion. Additionally, Amazon’s overall revenues grew 13% year-over-year, totaling $180.2 billion, with operating income remaining consistent at $17.4 billion.
Investment and Growth in Key Areas
AWS has augmented its data center capacity by 3.8 gigawatts over the past year, with plans to double this by 2027. The advertising division also saw significant growth, achieving revenues of $17.7 billion, a 22% increase year-over-year. Amazon’s AI services, particularly those powered by its proprietary Trainium 2 chips, contribute to its competitive edge, alongside a strong focus on expanding e-commerce offerings.
Future Outlook and Valuation
Amazon is forecasted to invest approximately $125 billion in capital expenditures for fiscal 2025 as it continues to strengthen its AI and cloud services. The company’s forward earning valuation stands at 31.4 times, reflecting investor confidence in its growth trajectory despite the high valuation premiums.
“`
