Amazon’s stock climbs after earnings. Why investors are cheering the results.
- Investing Investment Opportunities Markets
Ramit Sethi- 0
- 2 minutes read
Amazon stock rocketed 9% in after-hours trading on Thursday, even as the company plans to book an extra $20 billion in capital expenditures.
The e-commerce giant delivered a strong second quarter propelled by AI-related growth. Amazon CEO Andy Jassy said the cloud division could “very possibly” be on its way to becoming a $1 trillion business in terms of annual revenue. The company also saw meaningful contributions from more overlooked business areas, including advertising.
“Overall, Q2 delivered a decisive top-line beat and the strongest consolidated and AWS margin print in several quarters,” Evercore ISI analyst Mark Mahaney said in a client note.
Not everything was rosy. Zacks investment Research stock strategist Ethan Feller noted that trailing-12-month free cash flow flipped negative. While Feller said that’s intentional on Amazon’s part, it still “warrants monitoring” as capital expenditures stay elevated.
