Amazon Jumps 1.8% as AWS Growth Overpowers Tech Anxiety

This article first appeared on GuruFocus.

Amazon (NASDAQ:AMZN), the e-commerce, cloud and advertising giant, jumped approximately 1.8% to $263.16 Monday morning even as the Nasdaq slipped. That is real relative strength. Wall Street is drawing a hard line between companies already cashing in on AI demand and those still selling the dream.

The numbers explain the confidence. Second-quarter sales surged 20% to $200.6 billion, while operating income hit $27.5 billion. AWS revenue exploded 37% to $42.2 billion, its fastest growth in more than four years. Then came the monster number: Amazon now expects roughly $220 billion in 2026 capital spending, $20 billion above its previous plan.

The stock now trades 6.73% above its $246.57 GF Value estimate. That premium is not cheap, but AWS is earning it. Customers are consuming Amazon’s new AI capacity fast enough to…