Amazon's AWS Surge: 13% Boom and New Income Source for Investors

Amazon stock (AMZN) surged 13% following AWS' 37% annual revenue growth, confirming the company's AI and chip businesses exceeded $25 billion in revenue. Roundhill's AMZN WeeklyPay ETF (AMZW) offers a novel solution, providing weekly cash distributions while tracking Amazon's full price movement. Unlike typical covered-call ETFs, AMZW maintains full upside potential while delivering a ~40% annualized yield. With a 1% fee, variable payouts, and a June 2025 launch, AMZW is ideal for tax-advantaged accounts. AWS' 36.7% year-over-year growth, paired with Amazon's $200 billion 2026 capital expenditures, has turned trailing free cash flow negative. Investors highlight that Amazon's total return relies solely on price appreciation. These developments solidify AWS' technological leadership while boosting AMZW's market presence.

Markets are interpreting this performance as a testament to Amazon's AWS strategy success. The ECB's interest rate policy and global trade wars may influence AMZW's future performance.