AWS Revenue Growth Drives Amazon Stock Up Nearly 12%

In Focus

• Amazon stock rallied by close to 12% on October 31, 2025
• Stock surge was driven by strong growth in AWS cloud business
• AWS revenue grew by 20% in Q3 of 2025

Amazon stock rallied by nearly 12% in premarket trading on October 31, 2025. The stock surge was driven by strong Amazon AWS 2025 growth. According to Reuters, Amazon’s optimistic sales outlook also contributed to the stock surge as the tech giant eased investor concerns that it was trailing competitors in the AI race.

How Much Did Amazon AWS Revenue Grow in Q3 2025?

Revenue from the company’s cloud service unit, Amazon Web Services (AWS), grew by 20% in Q3. Google Cloud reported a 35% growth in the same quarter. Microsoft’s cloud revenue surged 40% as its capital spending exceeded investor expectations

Analysts suggest that Amazon’s AWS revenue growth reflects a potential shift for the company. Amazon’s Q3 cloud revenue stood at $33 billion, which is more than double that of Google Cloud’s $15.16 billion.

“There was definitely concern about AWS losing market share to Microsoft Azure and Google Cloud. But now AWS is aboard the train as well and they’re seeing a big revenue increase,” Argent Capital Portfolio Manager Jed Ellerbroek said. Though it’s the largest competitor to AWS, Microsoft is experiencing data center capacity crunch which it forecasted will persist until June 2026.

Performance of Amazon Stock has Been Slow

Amazon’s slow progress in securing major AI deals has weighed on its share prices, which have only gained 1.6% this year. Currently, Amazon stock is the weakest among the Magnificent Seven.

While most cloud and AI stocks have overtaken the S&P 500 index, Amazon is trailing the index largely because of cloud competition and absence of major AI updates. The tech company launched OpenAI models on AWS following a cloud computing partnership with the AI startup.

With demand for AI infrastructure growing, CEO Andy Jassy said AWS is “growing at a pace we haven’t seen since 2022.” Amazon will spend more on cloud infrastructure in the coming year. Its annual price-to-earning ratio stood at 29.63. This is lower than Microsoft’s 31.72 but higher than Google’s 25.98.

Quick Preview of Amazon’s AWS 2025 Growth

• Quarterly cloud revenue stood at $33 billion
• The revenue more than doubled Google Cloud’s $15.16 billion
• Amazon will increase cloud infrastructure spending in 2026

Growth in Amazon’s Retail and Ad Business

As Amazon shares soared due to AI-driven cloud growth, the ecommerce giant reported strong performance in its retail and ad businesses. Revenue from Amazon’s retail business grew by 11% year-on-year.

“Amazon’s retail results were very good. They’re growing 11% year over year. Name me another big retailer in America growing that fast, they don’t exist,” Jed Ellerbroek said.

Amazon’s retail advertising grew by 24% to reach $17.7 billion even as the company diversified revenue by placing ads on Echo devices, sponsored listings, and grocery carts.