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2025-08-01 17:43:19
Cloud Computing Giants Stall, Why Is Amazon Left Out? ⑴ Amazon's stock price plummeted nearly 8% in pre-market trading, driven by sluggish growth in its cloud computing division. ⑵ This performance stands in stark contrast to the strong growth of AI competitors Microsoft and Alphabet. ⑶ Data shows that Amazon AWS's second-quarter revenue grew 17.5%, while Microsoft Azure and Google Cloud saw sales surge 39% and 32%, respectively. ⑷ Analysts point out that investor sentiment is closely tied to the AI narrative, while AWS's performance has not lived up to market expectations. ⑸ Although AWS revenue accounts for only a small portion of Amazon's total revenue, its profits contribute approximately 60% of the company's overall operating income. ⑹ Amazon executives stated that their core retail business has been minimally impacted by Trump's tariff rhetoric, with no observed decrease in demand or significant price increases. ⑺ However, some analysts believe that the impact of tariffs may be delayed, as most of the inventory Amazon sold in the second quarter was purchased in the first quarter, leaving uncertainty ahead. ⑻ Despite this, its 12-month forward P/E ratio is 33.87, similar to Microsoft's 34.19 and much higher than Alphabet's 18.64.
