Amazon faces market sell-offs due to concerns over AI capital spending, but its AWS backlog has surged to $496 billion with triple-digit growth, mostly contracted for five years. AWS revenue is growing rapidly with strong margins, supported by custom AI chips and major AI clients. Amazon's advertising business also shows robust growth, complementing its vast retail and grocery operations. Despite high capital expenditures and temporary negative free cash flow, Amazon's strong balance sheet and long-term contracts make its expansion sustainable, leading investors to view dips as buying opportunities.
Amazon CEO Andy Jassy announced that the company will begin selling its AI chips, known as Trainium, to external customers starting in late 2027. This move could compete with NVIDIA, the current leader in AI chip supply, especially since Amazon has o...
Microsoft's Azure cloud grew 48% and Amazon's AWS grew 39%, their fastest in years, driven by high demand exceeding supply. Microsoft showed strong earnings and free cash flow, while Amazon missed estimates due to retail timing but posted record AWS ...
Amazon's AWS division reported its fastest growth in years, driving optimism for the upcoming earnings report. Despite a recent stock pullback, AWS revenue grew 37% with a strong operating margin, and the company projects significant future growth, p...
Amazon reported weaker-than-expected earnings for Q3 but showed strong cloud revenue growth of 39% year-over-year, driven by AI demand. Its cloud segment is on track for at least $70 billion in operating income, surpassing e-commerce profitability. D...
Amazon's stock dropped more than 11% after hours despite its marketplace showing steady revenue growth and margin recovery. AWS continues to lead the cloud market with expected 40%+ growth by 2027-28 and potential to reach $1 trillion revenue within ...
