Amazon Reports 24% Growth in Ad Revenue to $17.7 Billion in 2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6d ago
0mins
Source: Fool
- Ad Revenue Growth: Amazon's online advertising revenue surged 24% year-over-year in Q3 to $17.7 billion, significantly enhancing overall profitability despite ads accounting for less than 10% of total revenue.
- Cloud Computing Acceleration: Amazon Web Services (AWS) achieved a 20% year-over-year growth rate, returning to 2022 levels, indicating a growing trend of businesses turning to AWS to support their AI needs, thus driving sustained expansion in cloud services.
- Surge in AI Chip Demand: Amazon's Trainium2 AI chip business grew 150% sequentially, now a multibillion-dollar segment that reduces chip costs and strengthens the company's competitive edge in AI, further propelling overall business growth.
- Overall Financial Performance: Despite a mere 5% stock price increase over the past year, Amazon reported a 13% year-over-year revenue growth and a 38% rise in net income in Q3, reflecting strong fundamentals that may set the stage for a stock price rally in 2026.
Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AMZN is 294.71 USD with a low forecast of 250.00 USD and a high forecast of 340.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
43 Analyst Rating
40 Buy
3 Hold
0 Sell
Strong Buy
Current: 246.290
Low
250.00
Averages
294.71
High
340.00
Current: 246.290
Low
250.00
Averages
294.71
High
340.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
