Bloomberg Businessweek Instant Reaction: Amazon Jumps After Sales, Profit Tops Estimates
Oct 30, 2025
Poonam Goyal, a senior analyst at Bloomberg Intelligence specializing in e-commerce and athleisure, dives into Amazon's recent financial performance. She highlights AWS's impressive 20% revenue growth, the strongest in nearly three years. Goyal also discusses challenges in retail margins and pricing strategies, as well as ongoing investments in automation and fulfillment. The conversation touches on the booming advertising revenue, which is growing at 22%, and the impact of AI on Amazon's operational efficiency and long-term profitability.
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AWS Drives Top-Line Confidence
- Amazon beat across segments with strong sales, led by AWS growing 20% year-over-year.
- That AWS rebound reassures investors worried about cloud share loss to rivals.
Prioritize Price And Fulfillment Over Short-Term Margins
- Maintain competitive prices and invest in faster fulfillment to keep customers returning.
- Accept short-term margin compression to protect market share and customer loyalty.
Custom Silicon Becomes A Revenue Signal
- Amazon highlighted its Tranium custom training chip as a potential multi-billion dollar business.
- Investing in custom silicon is beginning to show returns and supports AI strategy claims.