'The Breakout the Stock Needed': Analyst Cheers Amazon's AWS Surge
Amazon.com Inc. (NASDAQ: AMZN ) stock jumped about 12% in Friday’s premarket session after the company reported stronger-than-expected second-quarter results and robust growth in its cloud business. The broader market was also supportive, with Nasdaq futures rising 1.06% and S&P 500 futures gaining 0.47%. Amazon reported second-quarter revenue of $200.61 billion and earnings of $5.75 per share, beating Wall Street estimates of $196.46 billion and $1.82 per share, respectively. Amazon Web Services (AWS) revenue increased 37% year over year to $42.2 billion, marking its fastest growth in 18 quarters. Management also said its AI and custom chips businesses each surpassed annualized revenue run rates of $25 billion. Analyst Sees AWS Breakout Evercore ISI analyst Mark Mahaney told CNBC the results delivered the AWS acceleration investors had been waiting for, calling the quarter R...
com Inc. (NASDAQ: AMZN ) stock jumped about 12% in Friday’s premarket session after the company reported stronger-than-expected second-quarter results and robust growth in its cloud business. 47%. 82 per share, respectively.
2 billion, marking its fastest growth in 18 quarters. Management also said its AI and custom chips businesses each surpassed annualized revenue run rates of $25 billion. ” Mahaney said AWS achieved its strongest growth in 18 quarters while operating margin expanded to 39%, showing that revenue growth and profitability are improving together. He added that stronger AWS performance could ease investor concerns about Amazon’s heavy artificial intelligence spending by demonstrating better returns on those investments.
The analyst also said Amazon’s third-quarter revenue guidance appeared softer mainly because Prime Day shifted into the second quarter, rather than due to weaker consumer demand. 69. 00) (July 28) Amazon Technical Analysis Amazon remains in a long-term uptrend. 75.
The golden cross formed in May, when the 50-day moving average moved above the 200-day moving average, continues to support the longer-term bullish trend. However, the 20-day moving average remains below the 50-day moving average, indicating near-term price action has been less consistent. Momentum has cooled slightly. The MACD remains below its signal line and the histogram is negative, suggesting buying momentum has weakened after the recent rally.
56. Key support: $225, an area where buyers previously stepped in during pullbacks. 78), reflecting continued expansion across its businesses. 11) The rankings suggest Amazon remains fundamentally growth-driven, although momentum indicators have softened after the recent advance.
55% Large inflows or outflows in these funds can influence trading activity in Amazon shares. 02 during premarket trading on Friday, according to Pro data. Photo via Shutterstock Read Also: Azure Ignites Microsoft Stock: AI-Fueled Earnings Beat Sparks 9% Rally