Amazon Stock Holds Firm Despite Pullback as AWS Growth Accelerates

Amazon's stock has retreated from its record high following the company's second-quarter results, but one growth engine is accelerating.

AWS revenue rose 36.7% year over year to $42.2 billion, while backlog climbed to $496 billion and annualized revenue run rate reached about $169 billion.

The cloud computing business generated $16.6 billion in operating income during the quarter, surpassing a $25 billion annualized revenue run rate for both custom chip and AI-related businesses.

Advertising revenue increased 26% year over year to $19.8 billion, supported by Sponsored Products, Prime Video, and live sports.