Investors love AI, as long as you’re a cloud host
Quick Answer
Amazon's Q2 earnings surpassed expectations, with a 20% sales increase and AWS revenue growing 37% to $42 billion.
Quick Take
Despite rising capex to $220 billion, investor confidence remains strong, highlighting the AI economy's reliance on cloud hosting.
Key Points
- Amazon's Q2 net sales rose 20%, boosting stock by nearly 10%.
- AWS revenue reached $42 billion, a 37% year-over-year increase.
- Capex forecast increased from $200 billion to $220 billion for 2026.
- Amazon's cash reserves decreased by $7.6 billion year-over-year.
- Investors favor cloud hosts like Amazon, while remaining skeptical of AI labs.
Source Excerpt
Amazon isn't slowing down on data center spending — but investors don't seem to mind.
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