Amazon reports strong Q3 earnings and plans $75 billion AI investment for 2024

Amazon reported strong earnings for the third quarter, with sales reaching $158.8 billion. A significant focus for investors was the company's capital expenditures, which increased by 81% due to investments in artificial intelligence. For 2024, Amazon plans to invest $75 billion in capital expenditures, with expectations to spend even more in 2025. Analysts emphasize that continued spending on AI is crucial for Amazon to maintain its competitive edge in the market. Despite the high spending, Amazon has maintained strong operating income margins. Analysts believe that the company's investments in AI represent a long-term opportunity, with a potential shift of more workloads to the cloud in the coming years.