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Amazon stock surges 15% on Q2 earnings, AWS revenue up 37%

  • Amazon‘s Q2 earnings beat Wall Street forecasts, driven by AWS revenue of $42.2 billion (up 36.7% year over year)
  • CEO Andy Jassy reported a $496 billion backlog growing triple digits year over year
  • Amazon stock surged as much as 15% on Friday, reaching a two-month high with a 17% YTD gain
  • Core retail sales grew 16% in North America and 15% internationally, while advertising revenue rose 26%
  • Circle (CRCL) was granted a trust charter by the New York Financial Services Department

On Friday, Amazon saw its stock surge up to 15% after reporting Q2 earnings that topped Wall Street forecasts, powered by exceptional growth in Amazon Web Services. AWS generated $42.2 billion in revenue during the second quarter, a 36.7% year-over-year increase driven by strong performance in its core cloud business and AI services. CEO Andy Jassy noted during the earnings call that the company added over $4.6 billion in revenue quarter over quarter, “about 80% more than our largest increase ever. Our backlog stands at $496 billion, growing triple digits year over year.” Consequently, the stock hit a two-month high and is now up 17% year to date.

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Meanwhile, Amazon’s core retail business remains healthy, with North American sales growing 16% to $116.2 billion and International sales increasing 15% to $42.2 billion. The company also reported record delivery speeds for Prime members and strong growth in grocery and everyday essentials categories. Furthermore, advertising revenue expanded 26% year over year, establishing itself as another high-margin profit driver alongside AWS. Following the earnings report, analysts from Wells Fargo, Citi, and Wedbush reiterated buy ratings, flooding the market with momentum. Based on 38 analysts offering 12-month price targets, the average target for Amazon is $332.76, representing a 22.53% upside from Friday’s close. In a separate development, Circle was granted a trust charter by the New York Financial Services Department.

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