Amazon’s cloud business has recorded its fastest growth since it experienced it in the last three years, boosting the confidence of investors and sending shares up 14% after it traded for hours.
The increase sees Amazon forecast quarterly sales over the estimation of Wall Street, adding almost $330 billion to its value in the market.
Part of the company’s component that benefited from the increased demand is its cloud division, as businesses did not stop investing in its artificial intelligence software development.
The strong outing helped to release slower growth in the core e-commerce segment in Amazon, which has continued to face challenges from weak consumer confidence and world trade uncertainty in the holiday season ahead.
Amazon’s Chief Financial Officer, Brian Olsavsky, mentioned that 2024 capital spending would not be below the $125 billion projected for this year. He also stated $89.9 billion had already been expended between January to September, mostly on artificial intelligence infrastructure.
If the rally gets into Friday’s session, it could become the company’s biggest one-day gain in 10 years.
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