Amazon’s stock price surged more than 10 percent on Friday morning following the release of its latest earnings report, which highlighted the impressive growth of its cloud computing division, Amazon Web Services (AWS). AWS caused a significant portion of the internet to crash just over a week ago, causing concern for current and potential customers alike.
CNBC reports that Amazon’s shares skyrocketed in early trading on Friday, as investors reacted positively to the company’s strong third-quarter earnings report, particularly the exceptional performance of its cloud computing business, Amazon Web Services (AWS). The tech giant’s stock price climbed by more than 10 percent, reaching its highest level since early 2023.
The standout figure in Amazon’s earnings report was the 37 percent year-over-year growth in AWS revenue, which reached $24.7 billion for the quarter. This significant increase in cloud revenue exceeded analysts’ expectations and demonstrated the continued dominance of AWS in the highly competitive cloud computing market.
Analysts were quick to weigh in on Amazon’s impressive results, with many expressing optimism about the company’s future prospects. Goldman Sachs analyst Eric Sheridan reiterated his “Buy” rating on Amazon shares, citing the strong performance of AWS and the potential for further growth in the cloud computing sector. Sheridan also raised his price target for Amazon stock from $5,500 to $5,700, suggesting that the company’s shares have room for additional appreciation.
The success of AWS has been a key driver of Amazon’s overall growth in recent years, as more businesses and organizations shift their computing needs to the cloud. AWS has consistently outperformed its competitors, such as Microsoft’s Azure and Google Cloud, in terms of market share and revenue growth.
Despite the strong performance of AWS, it remains an area of concern. An AWS outage caused a significant portion of the internet to crash on October 20:
In the early hours of Monday morning, Amazon Web Services, a dominant player in the cloud infrastructure market, reported a major outage that impacted countless websites and services worldwide. The issue, which began shortly after midnight Pacific Daylight Time in AWS’ primary US-East-1 region, was attributed to Domain Name System (DNS) problems with DynamoDB, a critical database service that underpins many other AWS applications.
The outage affected a wide range of well-known companies and services, including Amazon, Disney+, Lyft, the McDonald’s app, The New York Times, Reddit, Ring, Robinhood, Snapchat, T-Mobile, United Airlines, Venmo, and Verizon. Government websites in the United Kingdom, such as Gov.uk and HM Revenue and Customs, also experienced issues, as reported by the website Downdetector.
Read more at CNBC here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
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