Domo Shares Surge After Announcing AI Pact With Amazon Web Services
The data analytics company's stock jumped over 9% on heavy trading volume after revealing a new generative AI collaboration.
Shares of Domo, Inc. (NASDAQ: DOMO) surged more than 9% on Wednesday after the data analytics firm announced a strategic collaboration with Amazon Web Services (AWS) aimed at accelerating the adoption of generative AI solutions. The stock traded on volume nearly three times its daily average as investors reacted to the news.
The partnership will combine Domo's AI platform with AWS's extensive cloud infrastructure, enabling their mutual customers to build and deploy intelligent, autonomous agents capable of managing complex business processes. The collaboration centers on Domo's Agent Catalyst, a platform designed to create AI agents that can deliver real-time insights and automate actions based on company data.
"Through our expanded strategic collaboration with AWS, we are empowering organizations to build intelligent, autonomous agents that can independently manage complex business processes with built-in security, governance, and human oversight," said Josh James, founder and CEO of Domo, in a statement.
The agreement expands on Domo's existing relationship within the AWS Partner Network. The move is positioned to address a growing market need, with research firm ISG predicting that more than half of all enterprises will find their AI capabilities insufficient by 2027, requiring significant new investment to stay competitive.
Mark Relph, Head of Data and AI Partners at AWS, commented that the partnership will "accelerate the adoption of intelligent, autonomous AI agents that drive efficiency and automation for our mutual customers."
The announcement was met with support from customers like Filevine, a legal technology company, which noted the collaboration would enhance its ability to deliver data-driven insights to law firms. The strong market reaction underscores investor enthusiasm for companies leveraging partnerships with major cloud providers to deepen their footprint in the rapidly expanding enterprise AI sector.