Amazon (AMZN) shares climbed more than 3% on Thursday, making it one of the S&P 500’s strongest performers, after a string of positive developments reinforced confidence in its growth story.
A major catalyst came from Anthropic, the artificial intelligence startup backed by Amazon, which just closed a $13 billion funding round at a stunning $183 billion valuation.
Amazon holds an estimated 15–19% stake in Anthropic and is already benefiting from its rapid rise. Analysts say Anthropic could spend as much as $5 billion on Amazon Web Services (AWS) in 2026, helping to reaccelerate growth at Amazon’s most profitable business unit. AWS, which generates roughly 60% of the company’s operating profits, has faced stiff competition from Microsoft Azure (MSFT) and Google Cloud (GOOG). But investors are now warming to what some call an “AWS AI Resurgence,” with forecasts suggesting AWS could return to growth above 20% annually by late 2025.
The partnership is strategic beyond financials: Anthropic relies heavily on Amazon’s Trainum and Inferentia chips to build and deploy its Claude models, further embedding Amazon in the fast-expanding generative AI market.
Project Kuiper Lands First Airline Customer
Adding to investor enthusiasm, Amazon announced JetBlue Airways (JBLU) will be the first airline to use its Project Kuiper satellites to deliver free in-flight Wi-Fi starting in 2027. The service promises download speeds of up to 1 Gbps, significantly faster than competing systems currently in use.
This marks a breakthrough moment for Project Kuiper, Amazon’s multibillion-dollar effort to deploy a low-Earth orbit satellite constellation of more than 3,200 satellites. The initiative is designed to extend connectivity to underserved communities and new markets, with CEO Andy Jassy highlighting Kuiper as a future driver of meaningful operating income.
The JetBlue deal signals growing commercial traction for Kuiper and sets the stage for Amazon to compete with SpaceX’s Starlink in aviation and beyond.
Retail and Advertising Engines Keep Turning
While AI and satellites grabbed headlines, Amazon’s core businesses remain solid. Prime continues to anchor the retail segment, with over 80% of U.S. households subscribed. The company is expanding grocery delivery, launching new verticals like Amazon Autos, and strengthening Prime Video through exclusive content deals, including European sports rights.
Advertising is becoming another key profit driver. In the most recent quarter, ad revenue grew 22% year over year, outpacing broader industry trends. Coupled with automation—Amazon has deployed more than 1 million robots across its warehouses—these gains are boosting margins in North America and reinforcing its retail moat.
While AI and satellites grabbed headlines, Amazon’s core businesses remain solid. Prime continues to anchor the retail segment, with over 80% of U.S. households subscribed. The company is expanding grocery delivery, launching new verticals like Amazon Autos, and strengthening Prime Video through exclusive content deals, including European sports rights.
Advertising is becoming another key profit driver. In the most recent quarter, ad revenue grew 22% year over year, outpacing broader industry trends. Coupled with automation—Amazon has deployed more than 1 million robots across its warehouses—these gains are boosting margins in North America and reinforcing its retail moat.
Conclusion
Amazon is proving it can innovate far beyond its e-commerce roots. With Anthropic scaling AI workloads on AWS, JetBlue tapping Project Kuiper for satellite internet, and retail and advertising still growing, the company is positioned for multi-pronged expansion. At $234 per share, near its 52-week high, Amazon is once again showing investors why its empire stretches from the cloud to the skies—and beyond.
Amazon is proving it can innovate far beyond its e-commerce roots. With Anthropic scaling AI workloads on AWS, JetBlue tapping Project Kuiper for satellite internet, and retail and advertising still growing, the company is positioned for multi-pronged expansion. At $234 per share, near its 52-week high, Amazon is once again showing investors why its empire stretches from the cloud to the skies—and beyond.
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