AI, Amazon and Big Tech
Digest more
JPMorgan raised its Amazon stock target after AWS growth accelerated, but rising AI spending and negative free cash flow remain central risks
Amazon Web Services surpassed analysts' growth projections. The market-leading cloud announced arrangements with Meta and OpenAI in the second quarter. Amazon's cloud segment grew faster than analysts had predicted in the second quarter,
Amazon is the latest Big Tech company to report abnormally large earnings growth, thanks to paper gains on Anthropic investments.
The company raised its capital spending forecast and said Amazon Web Services sales increased 37% in the second quarter.
Billions of dollars are being poured into a new wave of AI technology. But will it pay off?
Amazon said it received a major boost from its previous $13 billion worth of investment in Anthropic.
Amazon.com Inc. shares jumped after the company reported cloud-computing revenue accelerated for a fifth straight quarter, easing investors’ concerns that it won’t produce a return on huge expenditures to meet the booming demand for artificial intelligence.
Amazon reported $200.6 billion in second-quarter revenue, up 20%, with AWS growing 37%, its fastest pace since the end of 2021.
Amazon shares jump as AWS revenue and margins accelerate faster than rising AI capex, signaling stronger cloud demand and improving returns on Amazon’s heavy investments.