Amazon's stock drops despite record AWS revenue
Amazon's AWS just had its best quarter in over three years, raking in $35.6 billion—a 24% jump—thanks to more companies moving online and using AI tools.
Even with Amazon's total sales hitting $213.4 billion, Wall Street wasn't thrilled: the stock dropped 9% after hours.
AWS is cashing in on the AI boom
AWS is winning big as businesses shift their data and apps to the cloud and ramp up on AI projects.
In just one quarter, AWS added more than a gigawatt of new capacity (that's a lot of server power), keeping up with demand from tech-hungry customers.
Amazon's big spending worries investors
Amazon said it will boost capital expenditures on things like AI, robotics, chips, and satellites—way above what investors expected.
The move has people worried about profits in the short term, even if it could pay off later.
For now, Wall Street is playing it cautious while Amazon bets big on the future.