Amazon CEO Andy Jassy reports strong cloud growth and increased capital expenditures as shares hit a new all-time high.
Amazon shares reached a new all-time high on Monday, surpassing the $3 trillion market cap threshold for the first time following a strong second-quarter earnings report. The company reported adjusted earnings per share of $1.97, exceeding analyst estimates of $1.82, on revenue of $200.61 billion. CEO Andy Jassy informed investors that the company is hiking its capital expenditure estimate to $220 billion for the year, driven by rising memory prices linked to artificial intelligence demand. Jassy noted that even with this increased spending, the company anticipates a lack of capacity to meet all demand through 2027. The growth was bolstered by Amazon Web Services, which reported revenue of $42.2 billion, beating expectations. This performance comes as major rivals Microsoft Azure and Google Cloud also reported significant growth in the user cloud market.