Amazon Suffers Major AWS Outage. Here's 1 Stock That Can Profit From It

"AWS holds about 30% of the global cloud market, underscoring its dominance in the sector. While this event might prompt some companies to rethink over-reliance on a single provider, competitors like Microsoft ( NASDAQ:MSFT ) Azure and Alphabet's ( NASDAQ:GOOG )( NASDAQ:GOOGL ) Google Cloud are unlikely to capture meaningful market share, as migrations are costly and complex. Still, there is one stock positioned to benefit from this outage."

"This disruption rippled globally, knocking out major platforms and businesses reliant on AWS infrastructure. The outage began around 2:40 a.m. ET and lasted several hours, with Amazon implementing fixes to mitigate the DNS problems by 6:35 a.m., though full recovery for all services took longer, and lingering effects - such as intermittent errors - persisted throughout the day. AWS holds about 30% of the global cloud market, underscoring its dominance in the sector."

"Amazon's stock experienced a brief dip in premarket trading as news of the outage spread, reflecting initial investor concerns over potential revenue losses and reputational damage. However, shares recovered swiftly after the market opened, closing up nearly 1% for the day. This resilience highlights how quickly the market dismissed the event as a temporary blip rather than a structural flaw."

An AWS outage in the US-EAST-1 region was triggered by DynamoDB database issues and DNS resolution failures, causing global service disruptions. Popular apps, financial platforms, ride-sharing services, airlines, banks, and e-commerce sites experienced downtime and operational halts. The outage began around 2:40 a.m. ET; Amazon implemented fixes to mitigate DNS problems by 6:35 a.m., but full recovery took longer and intermittent errors persisted throughout the day. AWS holds about 30% of the global cloud market, amplifying the fallout. Migrations to competitors are costly and complex, limiting immediate market-share shifts. Amazon's stock dipped briefly but recovered, closing up nearly 1%.

Read at 24/7 Wall St.