Amazon's (NASDAQ: AMZN) stock rose 12% in premarket after the company destroyed everyone's expectations with earnings on Thursday evening. This was an impressive quarter for Amazon, sales are better than expected, the companies various investments are paying off and profitability keeps going up. According to Doug Anmuth, a JP Morgan analyst, there are three reasons why Amazon's stock has exploded. The first reason is the acceleration of FXN revenue growth of 22%. The second reason is there has been an increase in commitment to profitability with 60 bps of CSOI margin expansion to 3.1% with additional room for growth. The final reason is Amazon Web Services profitability far exceed expectations with mid-teens CSOI margins driving a rerating and higher SOP valuation. "Amazon Web Services is a $5 billion business and still growing fast — in fact it’s accelerating. Born a decade ago, AWS is a good example of how we approach ideas and risk-taking at Amazon... We manage by two seemingly contradictory traits: impatience to deliver faster and a willingness to think long term," Amazon's CEO Jeff Bezo says, according to Business Insider.