Amazon Stock Surges After CEO Andy Jassy Predicts $1 Trillion AWS Revenue
Amazon shares rose sharply following its Q2 earnings report, driven by strong performance from Amazon Web Services (AWS) and a bold revenue prediction from CEO Andy Jassy. AWS reported a record 37% year-over-year growth in revenue to $42.2 billion—its fastest pace in nearly four years—and is now on track for over $160 billion annualized sales, with operating income up 63%. Jassy also highlighted the rapid expansion of Amazon's AI and chip businesses, both exceeding a $25 billion run rate. Amazon’s broader business saw solid growth as well. North America e-commerce revenue rose by 16% to $116.2 billion while international sales increased 15%, with advertising revenue climbing 26%. The company reported total Q2 revenue of $200.61 billion, surpassing analyst expectations and delivering an EPS of $2.78—though this included a one-time gain from its investment in Anthropic. Looking ahead, Jassy announced plans to increase capital expenditures for the year due to rising memory costs and strong AWS demand expected through 2027. He also predicted that AWS could eventually become a $1 trillion revenue business with robust return on invested capital (ROIC) and free cash flow.
Tickers: $AMZN
Topics: AI Amazon earnings report AWS cloud computing