Amazon Stock Soars 15% on Strong AWS Growth and Record Revenue

Amazon's stock surged by 15% in a single day after the company released its second-quarter financial results, exceeding analysts' expectations.

The growth is largely attributed to Amazon Web Services (AWS), which achieved revenues of $42.2 billion for the quarter, representing a 36.7% year-over-year increase.

AWS's backlog currently stands at an impressive $496 billion, showing triple-digit growth from the previous year. The company's custom chip business has also surpassed a $25 billion annualized revenue run rate.

AWS CEO Andy Jassy highlighted the competitive edge of AWS during a recent earnings call, stating that customers choose AWS because it offers the broadest capabilities and they want their AI inference to reside near their other applications and data.