Amazon Stock Surges Past New High as Cloud Business Booms
Amazon's stock price has reached an all-time high of over $287, marking a 19% increase for the year. The company's market capitalization is now hovering around $3 trillion.
The e-commerce and tech giant's cloud business, Amazon Web Services (AWS), has been driving growth, achieving its fastest pace in 18 quarters with a 37% growth rate. AWS generated 61% of Amazon's $27.5 billion in operating income last quarter, highlighting the importance of this segment.
Investors are becoming increasingly bullish on Amazon's artificial intelligence (AI) efforts, with CEO Andy Jassy stating that 'our AI and chips businesses each eclipsed run rates of more than $25 billion.'
Despite concerns about valuation, Amazon's price-to-earnings (P/E) multiple is relatively modest at 22, compared to the average stock on the S&P 500, which trades at a P/E multiple of 24.