Amazon Earnings Soar on Anthropic Stake Revaluation and AWS Demand
Amazon's (AMZN) second-quarter earnings were boosted by a significant revaluation of its stake in Anthropic, an artificial intelligence research company. The $66 billion gain from the stake's increase in value accounted for about two-thirds of Amazon's reported earnings.
The company's cloud computing unit, AWS, is also experiencing high demand due to tight capacity and a multi-year infrastructure supply gap. As a result, AWS's compute capacity is near-sold out.
Amazon's strong performance drove a large portion of the S&P 500's growth in the second quarter, with its retail and cloud units contributing significantly to aggregate corporate profits.