Amazon Stock Surges on Drone Delivery Expansion and AI Growth
Amazon.com's stock price surged by 2.5% during mid-day trading on Wednesday, reaching as high as $266.40 and closing at $265.84. The company traded a total of 35,251,735 shares, down 29% from its average daily volume.
The growth in Amazon's stock can be attributed to several factors, including the expansion of Prime Air drone delivery services to nearly 500 U.S. cities and towns by the end of 2026. This move is expected to provide a significant growth catalyst for the company as it competes with other major players in the market.
Additionally, Amazon's AWS (Amazon Web Services) growth has been reaccelerating due to increased demand for AI services. The company reported a 37% year-over-year increase in AWS revenue to $42.2 billion, its fastest pace in over four years. This growth has surpassed a $25 billion annualized run rate, with triple-digit growth.
Amazon is also investing heavily in its infrastructure, increasing its planned northwest Louisiana data-center investment by 50% to approximately $18 billion. This move signals confidence in sustained AWS demand and helps secure scarce electricity capacity for future AI workloads.