Amazon Web Services revenue grows for the fifth consecutive quarter, stock price jumps nearly 15% at opening
Complete. Here is the key summaryAmazon Web Services (AWS) revenue grew for the fifth consecutive quarter, reaching $42.2 billion in the quarter, with a growth rate of 37%, exceeding expectations. Driven by AI demand and strong performance, Amazon's stock price surged nearly 15% at the opening, marking the largest intraday increase since November 2022. Although capital expenditures of $53 billion raised concerns, the strong performance of the cloud business boosted market confidence
Amazon's stock price soared after the previously announced cloud computing business revenue exceeded analysts' expectations, with strong demand for artificial intelligence services accelerating sales for the fifth consecutive quarter.
After the market opened in New York on Friday, Amazon's stock price rose nearly 15%, marking the largest intraday increase since November 2022.
Amazon stated on Thursday that for the quarter ending June 30, its cloud computing business Amazon Web Services (AWS) saw revenue growth of 37% to $42.2 billion. This is the fastest growth rate since the fourth quarter of 2021. According to Bloomberg data, analysts had an average expectation of AWS revenue at $40.6 billion. AWS contributed about one-fifth of Amazon's revenue and most of its operating profit.
Amazon reported that for the quarter ending June 30, the company's expenditures on property and equipment (after accounting for some asset sales) exceeded $53 billion. Amazon previously indicated that capital expenditures are expected to reach $200 billion this year, primarily for artificial intelligence-related projects, leading investors to closely monitor for signs of over-investment