Shares of Amazon AMZN +0.55% rose in late trading Thursday after the company posted second-quarter sales and earnings that exceeded expectations, as well as a third-quarter outlook that beat Wall Street estimates.

Importantly, Amazon’s Web Services business posted better-than-expected growth in the quarter.

The company’s shares were up nearly 10% in after-hours trading. Shares of Amazon (ticker: AMZN) are up nearly 60% this year, and that was evident in its earnings report. AWS’ strong results spurred gains in shares of other cloud computing software companies, with Datadog DDOG +0.25% (DDOG) up 7%, Snowflake (SNOW) up 6%, and MongoDB (MDB) up 5%.

Amazon Web Services growth has been slowing in recent quarters as customers focused on optimizing their cloud spending, and that trend continues, but better-than-expected results will bolster confidence that the recent slowdown in cloud demand has bottomed out.