Amazon shares jump 12% as Q2 cloud revenue accelerates, easing concerns over competition from Microsoft and Google.
Amazon stock climbed nearly 12% in early trading, its strongest daily gain in over a decade, after Q2 earnings showed a rebound in cloud-computing growth. AWS revenue growth accelerated to 19% year-over-year, up from 17% in Q1, signaling a turnaround in demand for its cloud services.
The results eased investor fears that Amazon was losing ground to Microsoft Azure and Google Cloud. Analysts had expected AWS growth to remain flat or slow further amid macroeconomic pressures. The division’s operating income also rose 30% to $9.3 billion, exceeding estimates.
Markets reacted positively, with tech stocks rallying alongside Amazon. The Nasdaq Composite gained 1.5% in early trading, led by gains in AI-related shares.