Amazon Stock Surges on Strong E-Commerce Momentum and Cloud Demand

Amazon.com Inc.'s stock surged by 15.09 percent as the company's strong e-commerce momentum and surging cloud demand drove a blowout quarter. The tech giant's Q2 2026 net sales hit $200.6 billion, up 20% year over year, with operating income jumping 43% to $27.5 billion.

The core driver of Amazon's growth is its AWS (Amazon Web Services) business, which reported net sales of $42.23 billion, up from $30.87 billion a year earlier. AWS' operating income rose to $16.62 billion from $10.16 billion, with a $496 billion order backlog and a $25 billion revenue run-rate in custom AI chips.

Management raised its FY26 capital expenditure plan to $220 billion, mostly for AI data centers and chips, while hinting AWS can scale toward a $1 trillion business over time. However, the company's free cash flow swung into a modest outflow as it poured money into AI infrastructure.