Amazon's strong earnings report dispels market doubts about the AI bubble!

Amazon released a stunning earnings report today. Their Q2 revenue was $200.6 billion, with operating profit of $27.5 billion. More importantly, their AWS cloud business revenue reached $42.2 billion, a year-over-year increase of 37%. During the earnings call, the CEO also mentioned that their backlog of orders is close to $500 billion, and their cloud business will become a trillion-dollar industry.

These figures have allayed market concerns regarding the return on AI spending. Although their cash flow has turned negative and capital expenditures were raised, none of this matters in the face of tangible returns.

Moreover, current market sentiment is better than it was a while ago. One can only say that those few companies that reported earnings earlier were somewhat wronged,

Well, as long as there are no other negative catalysts going forward, the market should be able to stabilize.

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