Amazon.com, Inc. (NASDAQ:AMZN) shares jumped Thursday after the company delivered stronger-than-expected second-quarter earnings, with investors and analysts praising accelerating Amazon Web Services profitability as evidence that returns on artificial intelligence investments are beginning to materialize.
Cramer Calls Amazon ‘Astonishing’ After AWS Delivers
CNBC host Jim Cramer called the results “astonishing,” in a post on X, though he said Microsoft Corp. (NASDAQ:MSFT) remains the standout among the megacap technology companies.
This Amazon looks astonishing. Apple's stock has run too much to charge higher. Microsoft still starring
— Jim Cramer (@jimcramer) July 30, 2026
Tech analyst and CEO of Moor Insights & Strategy Patrick Moorhead said Amazon had “a hard follow” after Microsoft’s results but “crushed it on AWS revenue and gross margins.”
$AMZN had a hard follow after $MSFT but crushed it on AWS revenue and gross margins. Love the Trainium and Graviton growth. $AAPL is the safe tech investment bet. With a $5T valuation that may not always be the case. They’re raising prices to deal with memory and introducing… https://t.co/cUUzlKIwBt pic.twitter.com/m40GaHL6Vb
— Patrick Moorhead (@PatrickMoorhead) July 30, 2026
Read Also: Jensen Huang Wants Open-Source AI Models: BofA Says Chipmakers Get Paid Either Way
AWS Scale Continues To Impress Wall Street
Creative Planning Chief Market Strategist Charlie Bilello praised the results, saying that AWS’ revenue over the last 12 months was more than the annual revenue of 474 companies in the S&P 500.
Incredible: Amazon's AWS revenue over the last 12 months ($148 billion) was higher than the revenue of 474 companies in the S&P 500. $AMZNhttps://t.co/l5IYmkeySJ pic.twitter.com/lzXvwmY8jJ
— Charlie Bilello (@charliebilello) July 30, 2026
AI analyst Rihard Jarc said AWS’ expanding operating margins showed the narrative that hyperscalers are generating poor returns on AI workloads is “DEAD.”
$AMZN just delivered AWS Operating income margin 39% up from 33% last year.
— Rihard Jarc (@RihardJarc) July 30, 2026
Hyperscalers' AI workloads ROI is bad narrative is DEAD.
Amazon’s “striking” outlook for AI demand into 2028, coupled with its higher capital spending forecast, made Futurum Equities‘ Shay Boloor even more bullish on chipmakers Micron Technology Inc. (NASDAQ:MU), SK Hynix Inc. (NASDAQ:SKHY) and SanDisk Corp. (NASDAQ:SNDK).
$AMZN raised 2026 cash capex to $220B as higher memory costs add ~$20B while capacity still falls short of demand through 2027.
— Shay Boloor (@StockSavvyShay) July 30, 2026
Management called 2028 demand "striking" and said spending only follows visible customer demand.
So freaking bullish for $MU, $SKHY and $SNDK pic.twitter.com/El5kD02Fo9
Earnings Top Estimates,
Amazon posted revenue of $200.61 billion in the second quarter, beating the consensus estimate of $196.46 billion, according to Benzinga Pro. The company’s earnings of $5.75 per share topped analyst estimates of $1.82 per share.
For the third quarter, Amazon expects revenue between $197 billion and $202 billion, below analysts’ estimate of $204.08 billion. Forecasts operating income of $22.5 billion to $26.5 billion, up from $17.4 billion a year earlier.
CEO Andy Jassy told analysts during the company’s earnings call that the company now expects to spend $220 billion on capital expenditures this year, up from the roughly $200 billion forecast.
Price Action: The stock closed 3.90% higher at $235.50 on Thursday before jumping 9.55% to $258 in after-hours trading following the earnings release.
Benzinga edge rankings indicate AMZN has a Momentum score in the 18th percentile and a Growth score in the 95th percentile.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo Courtesy: katz / Shutterstock.com
