Amazon Jumps 1.8% as AWS Growth Overpowers Tech Anxiety
Khac Phu Nguyen
Tue, August 25, 2026 at 1:17 a.m. GMT+5:30
1 min read
- AMZN
+1.33% - ^IXIC
-0.76%
This article first appeared on GuruFocus
Amazon (NASDAQ:AMZN), the e-commerce, cloud and advertising giant, jumped approximately 1.8% to $263.16 Monday morning even as the Nasdaq slipped. That is real relative strength. Wall Street is drawing a hard line between companies already cashing in on AI demand and those still selling the dream
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The numbers explain the confidence. Second-quarter sales surged 20% to $200.6 billion, while operating income hit $27.5 billion. AWS revenue exploded 37% to $42.2 billion, its fastest growth in more than four years. Then came the monster number: Amazon now expects roughly $220 billion in 2026 capital spending, $20 billion above its previous plan
The stock now trades 6.73% above its $246.57 GF Value estimate. That premium is not cheap, but AWS is earning it. Customers are consuming Amazon’s new AI capacity fast enough to keep investors excited, even as relentless construction spending drives trailing free cash flow below zero. The deal is simple: keep AWS roaring and Wall Street will tolerate the $220 billion check. Let cloud growth crack, and that patience could vanish fast
