Amazon Stock Rebounds Above $250 Amid AWS Growth Challenges

Amazon's stock price has bounced back above $250 after plummeting from its August record near $287, but experts warn that the rebound remains vulnerable due to increasing operating costs and regulatory pressure.

The company's rapid growth in its AWS (Amazon Web Services) division is a major factor contributing to this volatility. Revenue in AWS surged 37% year-over-year to $42.2 billion, exceeding market expectations and making it one of Amazon's largest growth engines.

AWS has also signed a multiyear deal with Synopsys worth over $1 billion, providing the company with access to intellectual property and engineering tools for its proprietary Trainium AI accelerators and Graviton processors. This agreement supports Amazon's strategy of developing more in-house AI infrastructure rather than relying on external suppliers.

However, this spending comes with significant financial risks, particularly as Amazon continues to invest heavily in data centers, networking equipment, and computing capacity across its operations. The company plans to deploy another two million NVIDIA Blackwell Ultra, Rubin and Rubin Ultra GPUs during 2027 and 2028, following more than one million processors expected in 2026.