Shares of Domo Inc. (DOMO) are soaring nearly 10% in pre-market trading on Wednesday, as investors react positively to the company's announcement of a strategic collaboration agreement with Amazon Web Services (AWS). This significant stock movement comes just a day before Domo is scheduled to report its second-quarter earnings.

The cloud software company revealed that it has entered into a partnership with AWS to drive the rapid adoption of generative AI solutions. This collaboration aims to assist mutual customers in leveraging AI to create autonomous agents capable of analyzing and executing business processes independently, thereby automating complex workflows with robust security and governance. The partnership builds on the existing relationship between Domo and AWS, which includes data integration with Amazon Redshift, AWS Data Exchange listings, and competencies in AWS Machine Learning.

Market participants appear optimistic about the potential impact of this partnership on Domo's future growth and competitiveness in the rapidly evolving AI market. As companies increasingly seek to harness the power of generative AI for business insights and decision-making, Domo's closer alignment with a leading cloud provider like AWS could position it favorably in the industry. Investors will be keen to hear more details about this partnership and its potential impact on Domo's future performance during the upcoming earnings call scheduled for Thursday.