Stocks
Amazon Surges on Strong Q2 Earnings Amid Market Volatility
U.S. stock markets ended the week on a positive note, with the Dow Jones Industrial Average rising over 300 points on July 31, 2026.
Amazon.com Inc (AMZN) saw its stock surge 15.4% after reporting better-than-expected Q2 earnings, driven by strong performance in its cloud computing business, which has boosted investor confidence in AI spending.
The company's current Price-to-Sales (P/S) ratio is significantly above its historical median of ~3.4x, indicating that earnings-based valuation metrics like P/E do not apply due to Amazon's cash-flow-negative status.