Amazon (AMZN) posted its latest quarterly earnings yesterday, with first-quarter revenue and earnings per share topping Wall Street estimates. The news reflected in Amazon stock on Thursday, with AMZN opening at a fresh intraday record high before reversing sharply and falling to test its lowest levels of the week. Even with the reversal, the stock remains on track for its best month since July 2022, up nearly 25%.

The company reported earnings per share of $2.78, up from $1.59 a year ago. Revenue was $181.5 billion, up from $155.7 billion in the same quarter last year. Analysts had expected earnings per share of $1.62 on revenue of $177.2 billion, according to Bloomberg consensus estimates. In addition, the company’s cloud backlog — future business Amazon has already contracted but has not yet turned into revenue — jumped to $364 billion in the first quarter, CEO Andy Jassy said on the company’s earnings call.

Many on Wall Street are viewing the cloud backlog as a new bull case for the future of AMZN stock. The increase is a sharp jump from the $244 billion in cloud backlog Amazon disclosed at the end of the fourth quarter. Additionally, that figure doesn’t include Amazon’s recently announced $100B Anthropic deal, which is seen as a great choice.

Along with that demand commentary, Amazon also stuck by its previous capital expenditures forecast, not raising it like rivals Microsoft (MSFT) and Alphabet (GOOGL). “Amazon implicitly reiterated its $200 billion capex guide for the full year, which makes it the outlier amongst the big tech companies reporting – Google, Meta, and Microsoft all increased their capex spending outlook,” William Blair analysts Dylan Carden and Arjun Bhatia wrote to clients Wednesday night.

Als Read: Amazon Stock: Earnings Strong but UBS Turns Bearish on Cash Flow

Coming out of earnings, it’s clear that Amazon is ahead of the Magnificent 7. If those contracts from the backlong turn into revenue fast enough, the AI spending boom looks like a growth investment for Amazon, sending AMZN shares sky high. UBS analyst Stephen Ju reaffirmed a Buy on Amazon’s stock price and has a stock prediction target of $304, citing Amazon’s partnerships with Anthropic and OpenAI and a growing AWS backlog. He projects 38% AWS growth for 2026, well above the Street’s 26% consensus, and his 2027 operating income estimate runs roughly 39% above consensus too.