Amazon's Cloud Computing Growth Disappoints as AI Race Heats Up
25 Sources
[1]
Amazon slumps after cloud computing growth underwhelms investors
Aug 1 (Reuters) - Amazon.com shares tumbled 8% on Friday, as the tech giant's results fanned investor fears its cloud unit was falling behind Microsoft and Alphabet in the artificial intelligence race. Amazon Web Services, long the cloud-computing market leader, edged past Wall Street estimates
[2]
Amazon projects quarterly revenue above market estimates
July 31 (Reuters) - Amazon.com (AMZN.O), opens new tab forecast current-quarter revenue above market estimates on Thursday, encouraged by solid retail business despite pressures from U.S. tariffs on imports, while its cloud computing unit also benefits from strong AI demand. The company expects
[3]
Amazon cloud computing results fail to impress, shares dive
July 31 (Reuters) - Amazon.com (AMZN.O), opens new tab on Thursday forecast third-quarter sales above market estimates, but failed to live up to lofty expectations for its Amazon Web Services cloud computing unit after rivals handily beat Wall Street forecasts. Shares plunged by more than 7%
[4]
Amazon cloud computing results fail to impress, shares slide after hours
July 31 (Reuters) - Amazon.com (AMZN.O), opens new tab on Thursday forecast third-quarter sales above market estimates, but failed to live up to lofty expectations for its Amazon Web Services cloud computing unit after rivals handily beat expectations. Shares fell by more than 3% in after-hours
[5]
Amazon cloud computing results fail to impress, shares drop after hours
July 31 (Reuters) - Amazon.com (AMZN.O), opens new tab forecast third-quarter sales above market estimates on Thursday but failed to live up to lofty expectations for its Amazon Web Services cloud computing unit after rivals handily beat expectations. Shares fell by more than 2% in after-market
[6]
Amazon slides after cloud computing growth underwhelms investors
Aug 1 (Reuters) - Amazon.com (AMZN.O), opens new tab shares dropped nearly 8% before the bell on Friday, after growth in its cloud computing unit failed to impress investors, in contrast to the robust gains reported by AI-focused rivals Alphabet (GOOGL.O), opens new tab and Microsoft (MSFT.O),
[7]
Amazon tumbles after cloud computing growth disappoints investors
Aug 1 (Reuters) - Amazon.com shares fell about 7% on Friday as the tech giant's results fanned investor fears its cloud unit was falling behind Microsoft and Alphabet in the artificial intelligence race. Amazon Web Services, long the cloud-computing market leader, edged past Wall Street estimates
[8]
Amazon fails to quiet tariffs concerns as it offers worse-than-expected financial outlook
Tech giant reported generally positive revenue numbers, but may not meet expectations on its operating income Amazon failed to quiet concerns over how Donald Trump's sweeping tariffs would affect its e-commerce business as it reported its latest quarterly results Thursday. Wall Street's affinity
[9]
Amazon's record-breaking cloud revenue fails to excite investors
Amazon's profits surged during the second quarter of the year, with its cloud business recording record revenue. Posting after the bell on Thursday, the company has beaten Wall Street's estimates for its earnings. Total revenues increased to $167.7 billion, surpassing analysts' expectations of
[10]
Why is Microsoft soaring while Amazon sinks? AI growing pains
Wall Street analysts who follow tech and cloud computing were all but popping Champagne on July 30. Microsoft had reported stellar financial results and strong growth that could be connected to artificial intelligence. After the market closed, extended-hours trading shot Microsoft's share price up
[11]
Gloomy guidance and increased cloud competition weigh on Amazon's stock, despite solid earnings beat - SiliconANGLE
Gloomy guidance and increased cloud competition weigh on Amazon's stock, despite solid earnings beat Shares of Amazon.com Inc. were trading more than 6% lower after-hours today, after the e-commerce and cloud computing infrastructure giant could only offer light guidance for the current
[12]
Amazon shares drop on poor outlook, despite strong Q2 results
Stronger than forecast revenues for Amazon still saw a drop in its share price yesterday as analysts expressed concern over a relatively gloomy financial outlook. Yesterday brought good and bad news for Amazon. Despite an excellent quarter two, with net sales up 13pc to $167.7bn, the gloomy
[13]
Amazon reports solid 2Q results and offers better-than-expected sales view despite tariffs
NEW YORK (AP) -- Amazon posted higher fiscal second-quarter profit and sales, helped by its four-day sales event in July and underscoring its resilience despite tariff uncertainty. The Seattle-based company also offered on Thursday a sales outlook for the current quarter that beat analysts'
[14]
Why is Microsoft soaring while Amazon sinks? AI growing pains
Wall Street analysts who follow tech and cloud computing were all but popping Champagne on Wednesday. Microsoft had reported stellar financial results and strong growth that could be connected to artificial intelligence. After the market closed, extended-hours trading shot Microsoft's share price
[15]
Amazon Projects Quarterly Revenue Above Market Estimates
(Reuters) -Amazon.com forecast current-quarter revenue above market estimates on Thursday, encouraged by solid retail business despite pressures from U.S. tariffs on imports, while its cloud computing unit also benefits from strong AI demand. The company expects net sales to be between $174.0
[16]
Amazon cloud computing results fail to impress, shares dive - The Economic Times
Amazon forecast strong Q3 sales but disappointed on cloud performance, with AWS margins falling to 32.9% and growth lagging behind Microsoft and Google. Shares dropped over 7%. Despite solid retail and ad revenue, concerns over tariffs, weak AI progress, and rising costs have investors questioning
[17]
Amazon shares tumble 7% after cloud computing growth disappoints investors
Amazon.com shares fell about 7% on Friday as the tech giant's results fanned investor fears its cloud unit was falling behind Microsoft and Alphabet in the artificial intelligence race. Amazon.com shares fell about 7% on Friday as the tech giant's results fanned investor fears its cloud unit was
[18]
Amazon Stock Tanks As AWS Misses Whisper Number: 'I Don't Know What's Wrong With It,' Says Gene Munster - Alphabet (NASDAQ:GOOG), Amazon.com (NASDAQ:AMZN)
Amazon.com Inc. AMZN delivered a strong second quarter but missed expectations on cloud growth, sending shares tumbling and prompting concern from analysts over Amazon Web Services' momentum. Trending Investment Opportunities Advertisement AWS Misses Growth Whisper, Sparks Analyst Alarm Amazon
[19]
Amazon Post-Earnings Decline 'Totally Wrong,' Says Analyst As CEO Points Out AWS Has 'More Demand Than We Have Capacity' - Invesco QQQ Trust, Series 1 (NASDAQ:QQQ), Amazon.com (NASDAQ:AMZN)
Following its second-quarter earnings report, Amazon.com Inc.'s AMZN stock experienced a significant sell-off. However, a closer look at the details from the earnings call reveals that the primary reason for the slowdown in Amazon's cloud business, Amazon Web Services (AWS), is not a lack of
[20]
Is Amazon's Golden Goose Turning Into a Red Flag? | The Motley Fool
For years, Amazon's (AMZN 0.94%) cloud computing division, Amazon Web Services (AWS), has been the company's No. 1 cash cow, driving the majority of its profits. The company is best known to consumers for its huge e-commerce business, but savvy investors know that AWS has been the real story here.
[21]
Amazon: Capex Weighs on Profit Forecast | The Motley Fool
Investors had big expectations for Amazon, and in particular the company's AWS cloud unit, following strong results from Microsoft (MSFT 3.94%). Amazon revenue and earnings were up 13% and 33%, respectively, beating expectations, and AWS sales grew by 17% to $30.9 billion. Amazon's release boasted
[22]
Amazon shares fall on weak cloud growth while rivals Google,...
Amazon on Thursday forecast third-quarter sales above market estimates, but failed to live up to lofty expectations for its Amazon Web Services cloud computing unit after rivals handily beat expectations. Shares fell by more than 3% in after-hours trading after finishing regular trading up 1.7% to
[23]
Amazon tumbles after cloud computing growth disappoints investors
Amazon.com shares fell seven per cent on Friday as the tech giant's results fanned investor fears its cloud unit was falling behind Microsoft and Alphabet in the artificial intelligence race. Amazon Web Services, long the cloud-computing market leader, edged past Wall Street estimates for
[24]
Amazon cloud computing results fail to impress, shares drop after hour
(Reuters) -Amazon.com forecast third-quarter sales above market estimates on Thursday but failed to live up to lofty expectations for its Amazon Web Services cloud computing unit after rivals handily beat expectations. Shares fell by more than 2% in after-market trading after finishing regular
[25]
Amazon reports solid 2Q results and offers better-than-expected sales view despite tariffs
NEW YORK (AP) -- Amazon posted higher fiscal second-quarter profit and sales, underscoring its resilience despite tariff uncertainty. The -based company also offered on Thursday a sales outlook for the current quarter that beat analysts' projections. Still, it shares fell 5% in after-market
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Amazon's Q2 results show underwhelming growth in its cloud computing division, raising concerns about its position in the AI race against competitors Microsoft and Google.
Amazon's Cloud Computing Growth Disappoints Investors
Amazon.com's latest quarterly results have sparked concern among investors, particularly regarding the performance of its cloud computing division, Amazon Web Services (AWS). The tech giant's shares tumbled by 8% following the announcement, as the cloud unit's growth failed to meet the high expectations set by competitors Microsoft and Google
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Source: BNN
AWS Growth Lags Behind Competitors
AWS, long considered the market leader in cloud computing, reported a 17.5% increase in revenue for the second quarter, reaching $30.9 billion. While this narrowly surpassed Wall Street estimates, it paled in comparison to the robust growth seen by rivals. Microsoft Azure and Google Cloud posted impressive gains of 39% and 32%, respectively
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Source: Quartz
Profit Margins Under Pressure
Adding to investor concerns, AWS profit margins contracted to 32.9% during the quarter, marking their lowest level since the final quarter of 2023. This decline in profitability is particularly significant given that AWS typically accounts for about 60% of Amazon's overall operating income
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.The AI Race and Capital Expenditure
The disappointing growth comes despite Amazon's substantial investment in infrastructure. The company reported capital expenditures of $31.4 billion for the quarter, surpassing its competitors. Amazon also projected it would spend around $118 billion for the full year, significantly higher than analyst expectations of about $100 billion
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.Amazon's Response to AI Challenges
CEO Andy Jassy attempted to assuage investor concerns during the post-earnings call, emphasizing that it was still "very early days" in the AI race. He expressed confidence that Amazon's massive cloud business, which is larger than its rivals, is well-positioned to perform strongly once AI capacity constraints begin to ease
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Source: Silicon Republic
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Retail Business Shows Resilience
While cloud computing dominated investor focus, Amazon's retail business demonstrated resilience. Online store sales jumped 11% to $61.5 billion in the second quarter, exceeding expectations. The company has yet to see a significant drop in demand or notable price increases related to tariffs, according to Jassy
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.Future Outlook
Despite the challenges in its cloud division, Amazon provided an optimistic forecast for the third quarter. The company expects net sales to be between $174.0 billion and $179.5 billion, surpassing analysts' average estimate of $173.08 billion
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.As the AI race intensifies, Amazon's ability to leverage its vast cloud infrastructure and catch up with competitors in AI capabilities will be crucial for maintaining its market position and meeting investor expectations in the coming quarters.
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