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AMZN
New York Post
19 days

Amazon shares fall on weak cloud growth while rivals Google, Microsoft thrive: ‘Very disappointing'

1. Amazon forecasted Q3 sales above estimates at $174-$179.5 billion. 2. AWS revenue grew 17.5%, but profit margins contracted to 32.9%. 3. Competitors like Microsoft and Google reported stronger cloud revenue gains. 4. AWS growth disappointment could lead to loss of market leadership. 5. Amazon cut jobs, reducing headcount by 14,000 in recent quarters.

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FAQ

Why Bearish?

AWS performance fell short compared to competitors, causing negative sentiment. Historical examples show AWS growth issues lead to stock price declines, such as in Q2 2023.

How important is it?

The article discusses critical earnings results impacting core profits, notably through AWS performance. Poor forecasts and competitive pressures significantly influence investor perception and stock valuation.

Why Short Term?

Immediate negative perception from AWS results may result in short-term sell-offs. Previous quarterly disappointments have led to quick reactions in AMZN's stock price.

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