Amazon Drives Nasdaq Surge with 20% Cloud Revenue Growth

US markets ended last week on a positive note, propelled by strong quarterly earnings, particularly from Amazon. The Nasdaq Composite Index climbed by 0.61%, driven by a robust 20% increase in revenue from Amazon’s cloud computing division. The S&P 500 rose 0.26%, while the Dow Jones Industrial Average gained 0.09%.

In contrast, the pan-European Stoxx 600 finished Friday down 0.5%, with major European bourses and nearly all sectors experiencing a decline. Asian markets, however, showed a generally positive response following former US President Donald Trump’s recent tour of the continent. Japan’s Nikkei 225 surged over 2%, and South Korea’s Kospi added 0.5% after Nvidia announced plans to collaborate with the South Korean government to enhance the nation’s artificial intelligence infrastructure. Conversely, Hong Kong’s Hang Seng index fell 1.43%, and mainland China’s CSI 300 dropped 1.47% as manufacturing activity in China contracted more than expected, reaching its lowest point since May.

Strong Earnings from Major Players

Back in New Zealand, the S&P/NZX 50 index closed the week up 0.66%, buoyed by positive trading volume and sentiment. Several annual general meetings (AGMs) took place on Friday. SkyCity Entertainment indicated to shareholders that 2026 would be challenging, but forecasts for 2027 looked promising, leading to a 0.69% rise in its shares. Port of Tauranga reported higher-than-expected volumes in its first quarter but issued profit guidance of between $137 million and $147 million, which fell short of market expectations. In contrast, Vulcan Steel’s AGM noted stabilizing but lower volumes after a tough year, resulting in a significant share drop of 5.03%.

In Sydney, the S&P/ASX 200 index closed flat. The most considerable declines included Steadfast Group, which fell 9.68% after its CEO stepped down, leading to a trading halt. Droneshield, a maker of counter-drone systems, saw a 5.90% decline, a slight correction following a year of record performance.

Amazon reported its third-quarter earnings, revealing a 13% increase in sales, reaching US$180.2 billion (approximately AUD$313 billion). Its net income rose to $21.2 billion, up from $15.3 billion the previous year. Notably, Amazon Web Services (AWS) experienced a 20% increase in revenue, amounting to $33 billion, marking its fastest growth rate since 2022 as businesses intensify efforts to develop AI capabilities.

Other Major Financial Highlights

Warren Buffett’s Berkshire Hathaway also reported strong earnings, with operating income soaring 34% to US$13.485 billion in the third quarter. This surge was significantly driven by a more than 200% increase in insurance underwriting income, which reached $2.37 billion. Berkshire’s cash reserves hit a record $381.6 billion, surpassing the previous high of $347.7 billion set earlier this year, according to CNBC.

In the gaming sector, Min-Liang Tan, CEO and co-founder of Razer, expressed confidence that AI will revolutionize the industry. Tan predicted that the next year will showcase innovations in game development fueled by AI, suggesting that new and exciting games could emerge as a result.

As the week unfolds, several economic indicators are set to be released. Reports suggest that unemployment in New Zealand may creep up to 5.3%. The NZX is preparing for its first bitcoin-backed company listing, while Aimee Shaw’s Small Business Project highlights J’AIME, a local baker aiming to globalize her uniquely Kiwi macarons. Additionally, Miriam Bell will cover Simplicity’s initiatives to address New Zealand’s $210 billion infrastructure deficit. Westpac New Zealand is also expected to release its full-year financial results today, adding to the week’s economic narrative.