Amazon Falls as AWS Performance Lags Competitors' Cloud Units — Market Talk
Dow Jones Newswires ·
Amazon's stock decline likely reflects Wall Street's frustration with its AWS performance, JP Morgan's Doug Anmuth and Bryan Smilek say in a research note. The internet retailer"s cloud-computing arm reported that sales climbed 17.5% in 2Q, but the analysts note the Street is likely frustrated with its growth, profit and AI positioning given the 30%+ growth at Microsoft and Google's cloud units, even as AWS comes off a much bigger base. "However, we continue to expect better AWS growth in 2H - 18.5% in 3Q and 19% in 4Q - and our overall estimates increase coming out of earnings, with higher stores profit offsetting lower AWS margins," say Anmuth and Smilek. Shares decline 6.3% to $219.47. ([email protected]; @pennedbyden)
Source:
Dow Jones Newswires