Overview
- Amazon reported Q3 net sales up 13% to $180.2 billion, with AWS revenue rising 20% to $33 billion.
- AWS operating income increased to nearly $21.6 billion, while the unit’s operating margin fell to about 34.6% in Q3.
- Synergy Research Group estimates AWS’s global cloud revenue share slipped to a multiyear low of roughly 29%.
- Most share losses are going to smaller “other” providers offering tailored solutions rather than primarily to Google or Microsoft, with Microsoft also ceding ground.
- The stock’s advance reflects optimism about AI-driven cloud demand even as analysts scrutinize whether margin compression signals weaker pricing power or a shifting customer mix.