Amazon Jumps 4% as AWS Growth Hits 37%, Capex to $220B
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- Amazon shares jumped 3.90% after Q2 results showed accelerating cloud-revenue growth, according to the source.
- AWS posted 37% sales growth in the second quarter, continuing a streak of growth for Amazon's cloud-computing unit and exceeding analyst expectations.
- Amazon raised its full-year capital expenditures forecast to $220 billion — a $20 billion increase — to expand data-center infrastructure for cloud customers.
- The combination of accelerating AWS sales and rising data-center investment drew investor approval, per the source.
Why it matters: Amazon's simultaneous acceleration in AWS growth (37%) and a $20 billion bump to its capex guide to $220 billion signals management is betting enterprise cloud demand justifies the spending — and the 3.90% stock jump confirms investors, per the source, are buying that thesis rather than worrying about margin compression.
