Stocks
Amazon Shares Soar on Accelerating AWS Growth
Amazon's shares have surged over 15% after its second-quarter results revealed AWS growth accelerating at its fastest clip since 2021, with a cloud backlog of $496 billion.
The company's AI investment is paying off, driven by demand for AI compute capacity that exceeds supply, with customers reserving substantial chunks of capacity for 2027 and 2028.
However, the bear case remains, with Amazon's free cash flow swinging to a negative $7.6 billion over the trailing twelve months, and long-term debt doubling since the end of 2025 to roughly $128.9 billion.