Amazon shares jump 9.5% after AWS revenue rises 37%

For investors, the quarter changes the conversation from spending to monetization. Amazon has been telling Wall Street that generative AI on AWS is helping customers accelerate digital transformation, and CEO Andy Jassy said the unit could one day become a trillion-dollar business. That message landed with traders because it suggests Amazon’s large AI infrastructure bill can still translate into durable cloud demand rather than just margin compression.

The earnings pop also comes at a time when large-cap tech remains sensitive to any sign that cloud and AI investment is paying off. Jim Cramer called the results “astonishing,” echoing a broader market reaction that rewarded Amazon for delivering growth that outpaced expectations while showing AWS is still expanding its share of the company’s operating profit.

The stock’s technical backdrop had already turned volatile before the report, but the after-hours spike puts Amazon back above levels that traders will watch closely in the coming sessions. With the 50-day moving average well below the latest price and momentum indicators improving sharply, investors will now be looking to see whether the post-earnings gain holds once the market digests management’s capex plans and free cash flow guidance.

The next catalyst is whether Amazon can sustain AWS acceleration into the back half of the year, especially if enterprise AI spending remains strong and management keeps capital spending in check.