Amazon shares were up 9.6% at $244.22 on Friday. That is a new record closing high, according to Dow Jones Market Data. The previous record of $242.06 was set on Feb. 4.

Amazon stock is up 12% so far this year, underperforming the 23% rise for the Nasdaq Composite.

For the September quarter, the company reported adjusted earnings per share of $1.95, compared to Wall Street's consensus estimate of $1.57, according to FactSet. The earnings included investment gains from AI start-up Anthropic. Revenue came in at $180.2 billion, which was ahead of analysts' expectations of $177.9 billion.

Revenue for Amazon's closely watched cloud unit, AWS, was $33 billion versus the $32.5 billion analyst estimate.

Amazon said revenue for the current quarter would be between $206 billion and $213 billion, versus the $208.4 billion average analyst estimate.

"We continue to see strong demand in AI and core infrastructure, and we've been focused on accelerating capacity," Amazon CEO Andy Jassy said in a press release.

On the earnings conference call with analysts, Jassy said the company has doubled AWS capacity measured by power from 2022 and is on track to double capacity again by 2027.

The company now expects capital expenditures to come in at $125 billion for the full year, ahead of the current Wall Street forecast for $117.5 billion. It expects capex to increase again next year.

On Friday, J.P. Morgan analyst Doug Anmuth raised his price target for Amazon to $305 from $265 and reiterated a Overweight rating on the stock.

"We believe overall sentiment on AWS will improve notably in coming months as the business accelerates growth," he wrote. The company has "effectively flipped the script on the AWS narrative heading into 2026."

Anmuth predicts the rollout of Amazon's next AI chip called Trainium 3 will boost AWS revenue next year.

On Tuesday, Amazon said it is cutting 14,000 corporate jobs, citing the need to remove layers and reduce bureaucracy.