Amazon Stock Edges Closer to 52-Week Peak on Strong AWS Growth

Amazon's stock price has been edging closer to its 52-week peak as the company continues to see strong growth in its AWS business. The backlog for AWS, which accounted for 60.5% of Amazon's operating income and 21.1% of total sales, increased by $132 billion from the previous quarter, reaching $496 billion. This significant increase has led to investors reassessing their view on Amazon's AI investments.

Amazon CEO Andy Jassy stated that the company 'still doesn't have enough capacity' even with current spending levels. Nearly all AWS capacity for 2027 has been booked, and some supply for 2028 is already reserved by customers. This indicates strong demand for Amazon's cloud services.

The company reported a 20% increase in total sales to $200.6 billion and a 43% rise in operating income to $27.5 billion. AWS contributed significantly to this growth, with sales rising 37% to $42.2 billion and operating income increasing by 64% to $16.6 billion.