Amazon Jumps 1.8% After AWS Revenue Surges 37% on AI Demand
Updated
Updated · Yahoo Finance · Aug 24
Amazon Jumps 1.8% After AWS Revenue Surges 37% on AI Demand
3 articles · Updated · Yahoo Finance · Aug 24
Summary
Amazon rose about 1.8% to $263.16 on Monday, outperforming a weaker Nasdaq as investors rewarded clear AI monetization rather than future promises.
AWS drove the move: second-quarter cloud revenue climbed 37% to $42.2 billion, Amazon's fastest AWS growth in more than four years.
Group results reinforced that strength, with total sales up 20% to $200.6 billion and operating income reaching $27.5 billion.
Amazon also lifted its 2026 capital-spending target to roughly $220 billion, $20 billion above its prior plan, betting customers will keep absorbing new AI capacity.
That spending has pushed trailing free cash flow below zero, leaving the stock's premium valuation dependent on AWS maintaining its current growth pace.