Amazon Stock Rises as AWS Growth Reclaims Attention

This article first appeared on GuruFocus.

Amazon (NASDAQ:AMZN), the e-commerce, advertising and cloud-computing giant, advanced roughly 1.6% to $263.64 Wednesday morning as buyers charged back into mega-cap technology. Tuesday’s rate-driven selloff knocked growth stocks down. Wednesday brought the snapback. For Amazon, investors are quickly returning to the story that matters most: AWS is accelerating just as the AI infrastructure race gets bigger.

The growth is hard to ignore. Amazon’s second-quarter sales ripped 20% higher to $200.6 billion, while operating income jumped 43% to $27.5 billion. AWS was the monster number. Cloud revenue surged 37% to roughly $42.2 billion, its fastest growth in 18 quarters, while AWS operating income reached $16.6 billion. Amazon is not simply spending into the AI boom. Its biggest profit engine is already showing that customers want more computing capacity, and they want it fast.