Amazon Stock Tumbles After Late-August Rally on AWS Growth

Amazon's stock price has dropped by 1.96% to $254.69 in Tuesday afternoon trading, following a late-August rally tied to Amazon Web Services (AWS) and Nvidia GPU capacity.

The company's second-quarter 2026 results showed AWS revenue climbed 37% year over year to $42.2 billion, with a backlog of contracted future customer commitments of $496 billion at the end of the quarter.

Amazon has expanded its partnership with Nvidia to deploy an additional 2 million GPUs across its global infrastructure during 2027 and 2028, with analysts raising their AWS growth outlook and setting price targets above $300.