Amazon's stock peeks into record territory, as the AI script has flipped to a positive
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Amazon's stock rose to a record high after investors reacted positively to the company's AI-related deals and growth in its cloud business. The stock has gained 20.5% in April, driven by optimism around Amazon Web Services and its AI investments.
Amazon's stock briefly reached a record high on Friday, driven by investor optimism around the company's cloud business and AI investments. Amazon Web Services (AWS) has shown year-over-year revenue growth for three consecutive quarters, with analysts expecting this trend to continue. The company's stock had previously plummeted 21.7% after announcing $200 billion in capital expenditures, mostly focused on AI. However, recent AI-related deals, including a $50 billion investment in OpenAI, have lifted the stock. AWS achieved an AI revenue run rate of over $15 billion in the first quarter of 2026, and its custom chip business exceeded a $20 billion annualized run rate. Analysts expect 25% year-over-year growth for AWS in the first quarter, slightly above the Wall Street consensus. Amazon's proposed $11.6 billion acquisition of Globalstar is also contributing to the stock's gains, as it could enhance Amazon's satellite capabilities and deepen its relationship with Apple.
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