Amazon Surpasses $3 Trillion as AWS Powers Profit Growth
Amazon's market value has reached $3 trillion after its cloud unit Amazon Web Services (AWS) reported strong growth. The company said that AWS contributed 60% of operating profit and 21% of sales in the second quarter, with revenue increasing by 37%. AWS' operating margin climbed to 39.3%, which is nearly six times higher than the other two segments combined.
The company's quarterly sales exceeded $200 billion for the first time, while operating income increased at a faster pace than revenue. Amazon's net income totaled $62.6 billion, with $53.4 billion of that coming from pre-tax non-operating income, mainly due to its investment in Anthropic.
Amazon CEO Andy Jassy stated that AWS is 'booming' and growing 36.7% year-over-year in Q2, the fastest growth in 18 quarters. The company also reported that AI and Chips businesses each eclipsed run rates of more than $25 billion.