Amazon’s Q3 was strong: $1.95 EPS vs. $1.57 expected, on $180.2B in revenue. AWS delivered $33B, growing 20.2% YoY — a 270bp acceleration from Q2. AWS makes up just 15% of revenue but generated two-thirds of operating profit. That margin leverage is the story.

Advertising came in strong at $17.7B, while Q4 revenue guidance ($206B–$213B) was slightly below consensus, reflecting retail caution. But with AWS driving profits, investors looked past it.

AI Is a Long-Term Play, Not a Fix

Amazon’s $11B Project Rainier — a dedicated AI data center for Anthropic — marks an aggressive swing at owning GenAI infrastructure. It’s a forward-looking bet, not a catch-up move. A recent AWS outage didn’t shake confidence, with traders staying focused on growth.

Trade Call: Amazon Is the Cleaner Buy

Apple’s setup is binary: if iPhone 17 supply unlocks, the stock works. If not, Services won’t carry the multiple. Wait for confirmation before buying.