Today’s Change
(0.76%) $1.99
Current Price
$265.03
Key Data Points
Market Cap
$2.8T
Day’s Range
$256.19 – $273.89
52wk Range
$183.85 – $273.89
Volume
4M
Avg Vol
52M
Gross Margin
50.29%
Amazon (AMZN +0.76%), a leader in both e-commerce and cloud computing, closed Thursday at $265.06, up 0.77%. The stock moved as investors weighed a strong Q1 earnings beat and rapid AWS AI growth against heavier AI capital spending and cautious operating income guidance. How future AI capex translates into sustainable cloud and retail profit growth may dictate the stock’s next move.
Trading volume reached 96.4 million shares, about 83% above its three-month average of 52.8 million shares. Amazon IPO’d in 1997 and has grown 270,599% since going public.
How the markets moved today
The S&P 500 (^GSPC +1.02%) advanced 1.02% to finish Thursday at 7,209, while the Nasdaq Composite (^IXIC +0.89%) added 0.89% to close at 24,892. Within internet retail, industry peers MercadoLibre (MELI +1.45%) closed at $1,792.63, up 1.45%, while eBay (EBAY 0.30%) ended at $103.48, down 0.30%, as investors assessed differing e-commerce and marketplace growth profiles.
What this means for investors
Amazon beat expectations with its first-quarter report last night. Revenue jumped 17%, but its cloud business grew even faster. AWS, a leader in the cloud infrastructure market, experienced a 28% increase in revenue, bringing the total to $37.6 billion, nearly $1 billion more than expected.
Investors are still focusing on high capital spending plans and whether it will see adequate returns. That will likely determine the future direction of Amazon stock.
For now, ASW growth continues and management sees overall net sales growing between 16% and 19% year over year in the second quarter.
Howard Smith has positions in Amazon. The Motley Fool has positions in and recommends Amazon, MercadoLibre, and eBay. The Motley Fool has a disclosure policy.
