Amazon.com shares gained after brokerage firm Stifel raised its price target to $295 from $269 and reaffirmed its Outperform rating. The move followed strong third-quarter results and acceleration in key segments — cloud services and advertising — which strengthened expectations for margin growth in the coming quarters.

Amazon Web Services reported a 20% year-over-year revenue increase in constant currency — its fastest pace since 2022. Analysts noted that quarter-over-quarter momentum exceeded that of Microsoft Azure and Google Cloud, while AWS margins also came in above consensus, supporting the stock’s performance.

The company raised its fourth-quarter revenue guidance and indicated that capital expenditures will be higher than previously expected due to expansion of AI infrastructure and its custom silicon (Trainium) capacity. Stifel considers the increased investment justified given the rapid growth of high-margin segments.

Additionally, Amazon highlighted momentum from faster same-day delivery, greater adoption of AI tools by third-party sellers, and increasing interest in Rufus and Alexa+. Stifel sees room for further multiple expansion and maintains a positive outlook ahead of the holiday season.