Shares in Amazon soared by nearly 10 per cent in after-hours trading on Thursday after the Big Tech company's cloud business grew faster than expected.
Amazon reported earnings a share of $1.95 on $180.17 billion on revenue, compared to analysts' estimates of $1.57 on revenue of $177.8 billion.
Amazon Web Services, the company's cloud unit, reported a 20 per cent increase in revenue to $33 billion in the third quarter, ending in September, beating estimates of a 17.95 per cent increase.
“AWS is growing at a pace we haven’t seen since 2022,” Amazon chief executive Andy Jassy said in a statement.
The company projected net sales of between $206 billion and $213 billion in the fourth quarter, compared to analysts' expectations of $208.12 billion.
Amazon shares were trading 9.53 per cent higher at $244.09 each during after-hours trading as of 12.30am GST.
The results come a day after Microsoft's Azure and Google Cloud services also reported strong revenue growth in their earnings on Tuesday.
Microsoft, Alphabet and Meta all announced plans for higher capital expenditures as part of a push into chips and data centres.
“We continue to see strong demand in AI and core infrastructure, and we’ve been focused on accelerating capacity,” Mr Jassy said.
