When the market closed Friday, Amazon was worth $440 billion more
Anyone holding Amazon stock on Thursday night woke up 15% richer on Friday. $440 billion in market value — in one session. That's more than Austria's entire annual GDP. Just like that.
What happened? Amazon reported numbers that surprised even optimistic analysts. The cloud division AWS — the business where Amazon rents computing power to other companies — grew 35%. The fastest growth in two years. And: Amazon's proprietary AI chips have crossed the $25 billion revenue mark.
The story behind it: Who bought — and why now?
Hedge funds and large institutional investors had already massively increased positions before the numbers. Insider data shows: In the two weeks before the earnings call, hundreds of millions of dollars flowed into Amazon stock. Tech insiders have been selling heavily — at NVIDIA, executives dumped over $410 million in shares. But not at Amazon.
Why? The big players believe Amazon has the most stable business model in tech with AWS. While NVIDIA depends on a few large customers (Microsoft, Meta, Google), Amazon rents cloud capacity to millions of companies — from startups to corporations. More diversified. More crisis-proof. And now, with the AI boom, more profitable too.
What impresses me about this story: Amazon didn't just beat a forecast — the company showed it's not just watching the AI race, it's competing. Proprietary AI chips now generating $25 billion in revenue. That's real diversification.
What this means for you
If you had $10,000 in Amazon stock, it became $11,500 overnight. Sounds good — but here's the point many miss: This move was predictable for professionals. AWS growth was strong, cloud demand was there, the numbers were on the table. Anyone who understood the business could see this move coming.
That's exactly the difference between "I hope it goes up" and "I understand why it could rise." Professionals don't buy because they hope. They buy because they have data.
And now? Amazon is at $272. The question is: Is this the new fair price — or just euphoria? Wall Street analysts set the average price target at $312. That would be another 15% upside. But: The last three times a tech stock rose over 10% in one day after earnings, a correction followed in the next two weeks. Not because the business was bad — but because professionals take profits.
How professionals are reacting
Large investors are now moving cautiously. Some are taking profits — anyone who entered at $235 is now sitting on a fat gain. Others are hedging: They're buying put options with a strike price of $260, in case the euphoria flips.
What I find interesting about this strategy: These hedge funds still believe in Amazon — they're just hedging against the next two weeks. They're not expecting a crash, but volatility. That's the difference between panic selling (what my buddy Kalle always does) and professional risk management.
First steps for beginners
If you're now considering getting into Amazon: Be clear about what you're buying. Amazon is no longer just an online shop — AWS generates almost all the profit. Understand the business model. And: Don't buy after a 15% move out of FOMO. Wait for a calmer phase.
For those thinking long-term and investing broadly (ETFs, not single bets), this story is primarily one thing: a sign that cloud and AI are real business models. Not just hype.
I bought the T-share at 100 euros in 2000 and watched it fall to 8 euros. Back then I also thought "now or never." Today I know: Patience beats FOMO. Always.
Note: This article is for informational purposes only and does not constitute investment advice. Past performance is not an indicator of future results.