Amazon stock soared 15% on Friday as Andy Jassy reported strong second-quarter results and accelerating cloud growth.
Amazon stock rose 15% on Friday after the company reported second-quarter earnings that exceeded Wall Street expectations. CEO Andy Jassy noted that Amazon Web Services (AWS) generated $42.2 billion in revenue, a 36.7% year-over-year increase, driven by strong demand for AI services and core cloud computing. While the company raised its capital expenditure forecast to approximately $220 billion to support AI infrastructure, investors remained optimistic due to expanding operating margins. Andy Jassy highlighted that demand for AI and cloud computing continues to outstrip server capacity. The company also reported that its custom chip business has surpassed a $25 billion annualized revenue run rate. Despite increased spending on infrastructure, Amazon continues to trim its corporate headcount in various divisions to optimize operations. The results position AWS as a leader in the cloud space, maintaining strong partnerships with major AI providers like OpenAI and Anthropic.