Topline<\/p>\n
Jeff Bezos on Friday became the world\u2019s third-richest person once again, reclaiming the ranking from Google co-founder Sergey Brin as Amazon\u2019s stock accelerated at its fastest pace in four years, following a hotter-than-expected earnings report.<\/p>\n
A better-than-expected jump in cloud revenue boosted Amazon\u2019s stock. <\/p>\n
Getty ImagesKey Facts<\/p>\n
Shares of Amazon surged about 14% shortly after trading opened on Friday, pacing the stock\u2019s largest single-day gain since April 24, 2015 (14.1%).<\/p>\n
That burst followed Amazon\u2019s quarterly earnings on Thursday, in which the firm reported $206.6 billion in revenue boosted by a 37% year-over-year surge in cloud sales to $42.2 billion, exceeding Wall Street\u2019s estimates of $197 billion and $40.5 billion, respectively, according to FactSet.<\/p>\n
Amazon even raised its spending forecast this year to $220 billion, up from $200 billion, as CEO Andy Jassy said a majority of Amazon\u2019s capital expenditures would go toward matching demand for AI, noting the firm was \u201cunusually well-positioned for this AI inflection.\u201d<\/p>\n
Tech firms have been increasingly scrutinized as they raise their projected spending to meet demand for AI, but Forrester analyst Tracy Woo wrote in a note Thursday that Amazon\u2019s cloud sales growth was a \u201cclear indicator\u201d that its investments are \u201cmeeting market demand rather than outpacing it.\u201d<\/p>\n
Forbes Valuation<\/p>\n
Surging Amazon shares added $25 billion to Bezos\u2019 net worth, estimated at $271.5 billion as of Friday morning. That ranks the Amazon founder as the world\u2019s third-richest person between Google co-founders Larry Page ($279.3 billion) and Brin ($257.6 billion). <\/p>\n
tangent<\/p>\n
Apple shares plunged 9% after the firm issued weaker-than-expected guidance for its current quarter, citing \u201csupply constraints\u201d as it now anticipates revenue growth between 9% and 11%, below estimates of 12%. Apple CEO Tim Cook, who spoke in his last earnings call at the helm of the firm, said Apple expects to \u201cpay even higher memory costs\u201d amid a global memory shortage. \u201cIf you look beyond September, we see the market pricing for memory continuing to increase, which could drive an increasing impact on our business,\u201d Cook said.<\/p>\n
key background<\/p>\n
Bezos and Brin have swapped spots among the world\u2019s wealthiest people multiple times in recent weeks, as investors weigh incoming earnings reports and any signs of weakness in the global AI market. Most of the focus has centered on AI strategy from mega-cap firms, like Amazon, as they navigate an accelerating market and a shrinking memory trade. Earlier this week, Meta shares tanked while Microsoft rallied 15%, as traders took sides on either firm\u2019s approach to their AI products.<\/p>\n