Amazon Stock Holds Steady Amid Cloud Computing Growth

Amazon's stock price has been holding steady at around $245 as its cloud computing business continues to grow. The company's Amazon Web Services (AWS) backlog is a key indicator of future revenue, and it recently reached $496 billion.

The AWS division accounted for 78% of the year-over-year increase in operating income in Q2 2026, with revenue growing by 37%. This growth is driven by strong demand for cloud computing services, which Amazon has been struggling to meet due to capacity constraints. The company has stated that it expects more demand for AWS than capacity in the short-term.

The Generac deal, a long-term supply agreement worth $2.4 billion, highlights the level of investment Amazon is making in its AI and edge computing infrastructure. This underscores the need for Amazon to build out its physical AI infrastructure to meet growing demand from customers.