Amazon Stock Price at Crossroads as AWS Growth Accelerates

Amazon's stock price has stalled at $251.89 despite its most profitable businesses firing on all cylinders, creating an attractive entry point for investors.

The company's operating results show a different story: AWS delivered its fastest growth in 18 quarters, with revenue climbing 37% year over year to $42 billion in the second quarter of 2026. The division's backlog has swelled to $496 billion, growing at triple-digit rates.

AWS is doing the heavy lifting for Amazon, generating 60% of the company's operating income last quarter despite accounting for a smaller share of total revenue. Non-retail revenue grew 24% year over year to $124 billion in the quarter, with advertising and AWS driving growth.

The custom chip strategy is central to Amazon's margin story, with demand for Trainium and Graviton processors generating more than $25 billion in annualized revenue and growing at triple-digit rates. Trailing 12-month operating margin climbed to 12.7%, up from 6.5% in 2023.