Amazon reported $200.6 billion in second-quarter revenue, up 20%, with AWS growing 37%, its fastest pace since the end of 2021.

AWS sales expanded 37% year over year, which trounced analysts' expectations for 31% growth.

July 31 (Reuters) - Amazon shares jumped more than 12% before the bell on Friday after the e-commerce and cloud giant posted its strongest cloud growth in over four years, bolstering investor confidence that its multibillion-dollar AI bets are driving a fresh wave of demand.

Looking ahead, Amazon ( AMZN) expects revenue of $197B to $202B (midpoint $199.5B) for the third quarter, vs. $203.9B consensus. Amazon ( AMZN) also guided for operating income of $22.5B to $26.5B (midpoint $24.5B) vs. $25.1B consensus.

Amazon just posted one of its best quarters ever.

By Deborah Mary Sophia and Kanchana Chakravarty July 31 (Reuters) - Amazon shares surged nearly 14% on Friday after the tech giant's solid cloud sales growth reinforced investor confidence in its massive AI bets and quashed any concerns about the company trailing its Big Tech rivals in the AI race.

The AI race has been about who has the best model. That is changing, and Amazon is well placed to benefit.