Amazon Web Services suffered a daylong outage that crippled access to major websites from Snapchat to The New York Times, exposing how deeply the internet depends on a single cloud provider. While AWS scrambled to restore service, Apple investors celebrated as shares hit all-time highs on strong iPhone 17 sales data from China and the U.S.
Amazon Web Services turned Monday into a digital nightmare for millions of users as the cloud giant's infrastructure collapsed, taking down everything from Snapchat to airline booking systems. What started as scattered outage reports early Monday morning snowballed into a full-scale internet disruption that exposed just how much of our digital lives depend on a single company's servers.
The carnage was swift and widespread. Downdetector lit up with user complaints as popular sites went dark - Lyft riders couldn't book rides, The New York Times readers couldn't access articles, and Venmo users were locked out of their payments. Airlines bore the brunt of the chaos, with travelers reporting they couldn't find reservations or check in online. Even the British government acknowledged it was coordinating with AWS over impacted services.
"This outage didn't seem to be caused by a cyber attack," cybersecurity executive Rob Jardin told CNBC, pointing instead to a technical failure at one of Amazon's key data centers. The assessment underscores a troubling reality - when AWS stumbles, the internet stumbles with it.
This isn't AWS's first rodeo with major disruptions. The cloud leader faced a similar outage in 2023, while Microsoft made headlines last year when a botched CrowdStrike software update crashed Windows systems globally. Each incident highlights the fragility of our increasingly centralized digital infrastructure.
While Amazon worked frantically to restore service - which it finally achieved Monday evening - Apple was having the day of its dreams. The iPhone maker's stock rocketed to all-time highs after technology research firm Counterpoint released data showing iPhone 17 sales were off to a strong start in both the U.S. and China markets.
The Apple rally caught Wall Street's attention immediately. CNBC's Jim Cramer weighed in, arguing the surge proves why investors are "better off holding the stock than dumping it." Ritholtz Wealth Management CEO Josh Brown went further, telling CNBC that Apple's AI efforts could create a "whole different story" for the company's investment outlook.
