Amazon Leads Dow Jones Stocks After Stellar Earnings Report
Amazon stock is higher Friday after the e-commerce and cloud giant reported strong Q3 earnings and Wall Street sees even more upside ahead. Here's why.


Amazon (AMZN) stock is the best Dow Jones stock Friday after the world's largest e-commerce company beat top- and bottom-line expectations for its third quarter.
In the three months ended September 30, Amazon's revenue increased 11% year over year to $158.9 billion, boosted by 19.1% growth in its Amazon Web Services (AWS) cloud segment to $27.5 billion and an 18.8% rise in Advertising sales to $14.3 billion. Its earnings per share (EPS) were up 52.1% from the year-ago period to $1.43.
"As we get into the holiday season, we're excited about what we have in store for customers," said Amazon CEO Andy Jassy in a statement. "We kicked off the holiday season with our biggest-ever Prime Big Deal Days and the launch of an all-new Kindle lineup that is significantly outperforming our expectations."

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The executive added that there's a lot in the hopper for Amazon, too, including its NFL Black Friday game and Election Day coverage with Brian Williams on Prime Video. Jassy also said the company has 100 new cloud infrastructure and artificial intelligence (AI) capabilities that will be revealed at Amazon's AWS re:Invent the week after Thanksgiving.
The headline results beat analysts' expectations. Wall Street was anticipating total revenue of $157.2 billion and earnings of $1.14 per share, according to CNBC. Meanwhile, advertising matched expectations of $14.3 billion and AWS revenue came up just shy of the $27.5 billion estimate.
For the fourth quarter, Amazon said it expects to achieve revenue in the range of $181.5 billion to $188.5 billion, representing growth of 7% to 11% from the year-ago period. The midpoint of this range, $185 billion, is slightly below analysts forecast for Q4 revenue of $186.2 billion.
Is Amazon stock a buy, sell or hold?
Wall Street is bullish on the Magnificent 7 stock and for good reason. Amazon is up 31% for the year to date, easily outperforming the S&P 500's 21% gain.
According to S&P Global Market Intelligence, the average analyst target price for the consumer discretionary stock is $227.86, representing implied upside of more than 14% to current levels. Additionally, the consensus recommendation is a Strong Buy.
Financial services firm Stifel is one of the more bullish outfits on AMZN stock with a Buy rating and $245 price target.
"Amazon is one of the primary beneficiaries of Covid given accelerated e-commerce sales growth and Prime membership adoption, as well as the digital transformation that will accelerate cloud services adoption, which we expect to see over a longer time frame," says Stifel analyst Mark Kelley.
And as a leader in these two rapidly growing industries, "we believe Amazon remains well positioned in a recovery scenario given cloud services, marketing services and certain e-commerce categories and geographies are still in the early phases of development."
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
8 Rules for Choosing the Right Financial Adviser
Not all advisers are created equal. Here's how to find one qualified to manage your wealth and protect your legacy. From verifying credentials to trusting your gut, follow these rules to find a financial adviser.
-
A Hated TSA Rule Was Finally Phased Out
After nearly 20 years, the TSA is ending its shoes-off policy. Travelers will still need a Real ID, and advanced screening remains in place. Here’s what to expect on your next flight.
-
Stock Market Today: Trump's Copper Comments Cause a Stir
Markets remain resilient and monetary policy makers stand fast against a rising tide of new terms of trade, including around copper.
-
Opportunity Zones: An Expert Guide to the Changes in the One Big Beautiful Bill
The law makes opportunity zones permanent, creates enhanced tax benefits for rural investments and opens up new strategies for investors to combine community development with significant tax advantages.
-
Five Ways Retirees Can Keep Perspective Through Market Jitters
Market volatility is a recurring event with historical precedents (the dot-com bubble, global financial crisis and pandemic), each followed by recovery. Here's how people who are near or in retirement can navigate economic uncertainty.
-
Stock Market Today: Trump Reextends His Tariff Deadline
When it comes to this president, his trade war, the economy, financial markets and uncertainty, "known unknowns" are better than "unknown unknowns."
-
Should You Start a 'Trump Account' for Your Child?
"Trump Accounts" for kids is part of the One Big, Beautiful Bill that was just signed. Look at if it's worth it for your children.
-
I'm a Financial Strategist: This Is the Investment Trap That Keeps Smart Investors on the Sidelines
Forget FOMO. FOGI — Fear of Getting In — is the feeling you need to learn how to manage so you don't miss out on future investment gains.
-
Can You Be a Good Parent to an Only Child When You're Also a Business Owner?
Author and social psychologist Susan Newman offers advice to business-owner parents on how to raise a well-adjusted single child by avoiding overcompensation and encouraging chores.
-
How Advisers Can Steer Their Clients Through Market Volatility (and Strengthen Their Relationships)
Financial advisers need to be strategic when they communicate with clients during market volatility. The goal is to not only reassure them but to also help them avoid rash decisions, deepen your relationship with them and build lasting trust.