Amazon com stock surged nearly 3% on Tuesday despite a lingering Amazon Web Services outage that is affecting many websites and online services. The stock’s strong performance—which was well ahead of the day’s 2% rally in the S&P 500 index —might seem like peculiar behavior given the widespread nature of the outage, but it reflects the fact that AWS has had outages before, and they have not at all slowed the growth of the service, which is currently generating revenue at a more than $60 billion annual rate. In short, while the outage is certainly frustrating for millions of website users, Amazon investors simply don’t expect that today’s issue is going to change the outlook for AWS or cloud computing more generally. Read More...
Amazon com stock surged nearly 3% on Tuesday despite a lingering Amazon Web Services outage that is affecting many websites and online services. The stock’s strong performance—which was well ahead of the day’s 2% rally in the S&P 500 index —might seem like peculiar behavior given the widespread nature of the outage, but it reflects the fact that AWS has had outages before, and they have not at all slowed the growth of the service, which is currently generating revenue at a more than $60 billion annual rate. In short, while the outage is certainly frustrating for millions of website users, Amazon investors simply don’t expect that today’s issue is going to change the outlook for AWS or cloud computing more generally.
