Amazon Set for Post-Earnings Drift as Cloud Business Booms

Amazon's recent earnings report has set up the company for a potential post-earnings drift, where its stock price continues to rise after the initial surge. The tech giant reported strong growth in its cloud business, Amazon Web Services (AWS), with revenue jumping 37% year-over-year to $42.2 billion, beating Wall Street expectations.

This marked the fastest quarterly growth for AWS in 18 quarters, and investors are taking notice. CEO Andy Jassy revealed that AWS has a massive backlog of nearly $500 million, with the company struggling to meet soaring customer demand through 2028. This news is particularly bullish as it highlights Amazon's most profitable business segment.

With AWS experiencing renewed growth and artificial intelligence (AI) demand on the rise, Amazon's stock price is likely to continue its upward trend. The company's earnings report also showed a robust 82.15% expected growth in earnings per share (EPS) for 2026, making it an attractive investment opportunity.