1. Amazon's AWS growth rate decreased to 20% from over 50% five years ago. 2. Capital expenditure for AWS expected to rise 27% to $105 billion in 2025. 3. Mixed Q4 results led to a 4% drop in Amazon shares post-report. 4. Microsoft and Google also showed decelerating cloud growth, impacting investor sentiment. 5. Meta's lack of cloud services allowed it to outperform amidst Big Tech struggles.
The slowdown in AWS growth and mixed earnings suggest ongoing challenges, negatively affecting investor confidence. Similar deceleration in Microsoft and Google indicates broader cloud sector concerns impacting AMZN.
The article highlights key trends in cloud growth and capital expenditures that can significantly influence AMZN's performance and investor sentiment.
The immediate effect of earnings and growth forecasts is likely to trend downwards, similar to past quarters where results disappointed investors.