- Amazon's stock surged 5% to a record high of $285.01, pushing its market capitalization above $3 trillion for the first time.
- The rally followed Amazon's strongest cloud growth in over four years, which reassured investors about the return on AI investments.
- While Amazon and Microsoft saw positive stock reactions after earnings, other megacaps like Alphabet, Meta, and Tesla experienced cash flow pressures due to their heavy AI capital expenditures.
Quotes
“It's a consumer story and it's an AI story”
“The big scepticism coming into earnings season was if they (hyperscalers) were turning the spigot down on spending on AI”