Amazon Web Services Outage in Virginia Data Center
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 08 2026
0mins
Should l Buy AMZN?
Amazon Web Services (AMZN) experienced an outage in a northern Virginia data center zone that disrupted multiple platforms, including issues at CME Group (CME) and Coinbase (COIN), with Coinbase attributing its trading platform problems directly to the AWS disruption, though it was not immediately clear whether CME's issues were related, Reuters reports. AWS's issue stemmed from increased temperatures within a single data center and it was observing early signs of recovery, as it was able to get additional cooling system capacity online, according to the report.
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Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise
44 Analyst Rating
41 Buy
3 Hold
0 Sell
Strong Buy
Current: 267.220
Low
175.00
Averages
280.01
High
325.00
Current: 267.220
Low
175.00
Averages
280.01
High
325.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strong Cloud Growth: Amazon Web Services (AWS) saw a 28% rise in net sales during the first quarter, marking its strongest growth in over three years, showcasing its robust performance amid surging AI demand, which further boosts the company's overall profitability.
- High Margin Business: AWS has maintained an operating margin exceeding 35% for the third consecutive year, and while Amazon's e-commerce operations have historically been lean, AWS's high-margin nature makes it a significant contributor to the company's overall operating profit, accounting for over half of it.
- Optimistic Market Outlook: With increased investments in AI infrastructure, market expectations for Amazon's future are rising, and it is anticipated that Amazon will soon surpass the $3 trillion market cap, joining the elite group of companies that have achieved this milestone.
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See More
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- Stock Surge: Amazon's shares have climbed over 30% since the end of March, reflecting strong market confidence in its AI business, which is expected to drive sustained growth in the coming years.
- Capital Expenditure Plans: Amazon announced a $200 billion investment in AWS infrastructure by 2026 to meet surging AI demand, with this investment projected to translate into revenue between 2027 and 2028, indicating the company's commitment to future market opportunities.
- Chip Business Potential: Amazon's in-house chips like Graviton and Trainium are driving revenue growth in its AI business, with a current annual revenue run rate exceeding $15 billion, showcasing its competitiveness in the chip market and potential for future expansion.
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See More
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- Cloud Intelligence Revenue Surge: The cloud intelligence segment's revenue climbed 38% to $6 billion, with adjusted EBITA soaring 57% to $550 million, indicating rapid growth in cloud computing, although the majority of profits still stem from its e-commerce operations.
- E-commerce Revenue Fluctuations: While e-commerce revenue rose 6% to $17.7 billion, adjusted EBITA plummeted 40% to $3.5 billion, with quick commerce revenue soaring 57% to $2.9 billion, highlighting the pressure of investments on profitability.
- Future Investment Outlook: Alibaba is heavily investing in quick commerce and AI infrastructure, aiming for profitable scale by the end of 2027, and although AI currently represents a small part of its overall business, its potential to lead the market in China is significant.
See More
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- Financial Impact: The lawsuit claims that Amazon is using consumer funds to maintain favor with Trump, resulting in higher prices for consumers due to tariffs, with Amazon's stock down nearly 1% ahead of Monday trading.
- Legal Basis: The lawsuit accuses Amazon of violating Washington state consumer protection laws and claims unjust enrichment, highlighting the dual pressures the company faces from legal and ethical standpoints.
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See More
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- Coca-Cola's Brand Power: Coca-Cola, with a 64-year dividend growth history and a gross margin of 61.82%, consistently maintains stable dividend returns amid economic fluctuations; although its annual growth rate is modest, its dividend appeal remains strong.
- McDonald's Asset-Light Model: By owning most of its restaurant real estate and charging franchisees rent, McDonald's showcases higher profit margins than traditional restaurant chains; while it has not yet reached
See More
