This week, Amazon’s stock suddenly took off—surging 14% in just five days and significantly outperforming the QQQ and other cloud giants.
If you’ve been paying close attention, you’ll notice that Amazon’s relative strength has actually been solid over the past 2–3 months. While the broader market and major tech names were sliding, AMZN quietly held above its previous earnings low (around $200), laying a clear foundation for this sharp rebound.
Beyond technical and macro factors, the key driver is Andy Jassy’s annual shareholder letter released on Thursday. It offered much-needed details the market has been watching—like AWS’s AI-related business hitting a $15 billion run rate, along with updates on the Trainium chip lineup.
With more capacity expected to come online by mid-year, AWS growth looks set to reaccelerate. The long-standing narrative of Amazon being an “AI laggard” is starting to shift.
As a major cloud and training partner for Anthropic, AWS is also benefiting—both fundamentally and sentiment-wise—from Claude’s growing LLM market share and its steady stream of new product launches.
On top of that, Amazon is trading at around 11x NTM EV/EBITDA—near a 10-year low—fueling fresh optimism that a reacceleration in AWS could drive valuation expansion.
That said, long-time Amazon shareholders have seen this story before—every time momentum builds, something tends to knock the stock back down.
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