Amazon's most lucrative segment is accelerating revenue growth.
A trend has been gaining momentum at Amazon and Alphabet.
Alphabet says AI demand is outrunning supply
AWS's AI rebound, surging cloud demand, and hefty capex are reshaping this tech giant's profit mix, today, April 30, 2026.
Amazon delivered 17% revenue growth and 30% operating income growth in Q1 2026, with margins expanding to 13.1%. I maintain a 'Strong Buy' rating on AMZN, adjusting the valuation multiple to 15.4x EV/EBITDA, supporting a 13% base case upside and 40% target upside. AI-driven optimization is boosting margins and operating leverage across retail, advertising, and AWS, despite near-term free cash flow pressure from elevated CapEx.
Cloud computing will help this trio join Nvidia at that rarefied level.
Marketplace owners write the rules. Amazon's sellers are finding that out firsthand, as new policies ban advertisers from charging ad costs to credit cards as a primary payment mechanism.
Analysts broadly see Amazon.com Inc. (NASDAQ:AMZN) balancing strong core performance with rising AI-driven investment, as the company pushes to maintain leadership in cloud and emerging technologies.
GOOGL's Cloud revenues surge 63% to roughly $20B on Gemini demand; AI product revenues rise nearly 800% and backlog above $460B fuels outlook.
Caterpillar bulldozed its way to a 10% gain and dragged the Dow along for the ride. Meanwhile, Big Tech had a rougher morning.