1 Stat That Makes Amazon Hard to Ignore Right Now
Amazon(NASDAQ: AMZN) just reported outstanding third-quarter results, but its stock sank after earnings. There were clear worries about how much Amazon is spending, and it reported negative free cash flow for the third quarter in a row.
However, there was a lot to like about the report, and the stock is already back up. Consider this one stat that's hard to ignore right now.
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Amazon's sales increased 12% year over year, or 13% excluding the impact of unfavorable foreign exchange. The e-commerce growth was middling, and the biggest growth came from Amazon Web Services (AWS), the company's cloud division.
In fact, AWS sales increased 39% year over year, back to levels from four years ago, but on a base that's more than double the size. Some examples of the incredible demand include Fortune 500 companies increasing their spend on Amazon Bedrock sevenfold from last year, and total token volume on Bedrock increasing almost 17-fold.
Even more exciting, Amazon is already providing guidance that AWS sales will increase 40% in both 2027 and 2028. CEO Andy Jassy said, "There has never been a trillion-dollar revenue business, and we may have two of them in the next 5-10 years."
That's a compelling reason to buy Amazon stock today .
Should you buy stock in Amazon right now?
Before you buy stock in Amazon, consider this:
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Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy .
1 Stat That Makes Amazon Hard to Ignore Right Now was originally published by The Motley Fool
