Despite a lagging Amazon Web Service outage that affects many websites and online services, Amazon (NASDAQ:AMZN) stocks surged 3.1% on Tuesday.
Although the strong performance might seem like peculiar behavior given the widespread nature of the outage, it reflects that Amazon has endured cloud outages before.
Not all past outages have slowed the growth of the service that currently generates revenue at a more than $60 billion annual rate.
Notably, AWS already had revenues of $16.1 billion in the September quarter, up 39% year-over-year and more than Wall Street estimates at $15.5 billion.
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The AWS service, the largest cloud-computing provider in the US, allows customers and many large corporations to rent computing, storage, and network capabilities.
It appears that the outage is affecting many websites including, Coinbase, Tinder, and Zoom Video Communications.
On Tuesday, AWS said it began investigating increased error rates and console issues in the US-East-1 region but that customers might have access to consoles in other areas.
Amazon did not respond to questions about the outage but instead directed customers to its AWS status webpage.
The company said the outage was related to network devices and linked to the application programming interface, or API, a set of protocols for building and integrating application software.
It is unclear how long the company expects the outage to continue. According to vice president, Sid Nag at research firm Garter Inc., cloud service outages are not uncommon.
However, they have become more noticeable over the past few years as more companies migrated to these major cloud platforms.
And considering there are so few cloud platforms to choose from, it is inevitable that products built on the cloud will experience some form of outages, Nag said.
The cloud infrastructure market is owned by 90% of the top five players, with Amazon far in the lead. Alphabet Inc.’s Google, as well as Microsoft Corp., are also significant providers of cloud services.
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