AWS cloud grew 23%, a bit above expectations. We also talked yesterday that once its capital spending surpasses Google's, it’s expected to fall more than Google did. But oops, didn’t expect it to drop this much.$Amazon.US
Alright, $Amazon(AMZN.US) reports after the bell tonight. This one's a big deal—it was the laggard in the "Mag 7" last year, so everyone's watching to see if it can turn the narrative around.
Here's the real question: can AWS keep firing on all cylinders? Growth hit 20% last quarter, which was a great sign. If it slows down at all, even if they beat on earnings, the stock's gonna feel it.
Then there's the capex worry. Google's huge $180B+ spending plan just freaked the market out. Now Amazon's up next, and if they guide to a massive number without showing killer AWS growth to justify it, investors are going to bolt.
The bright spot is the AI story, mainly through Anthropic. The talk is that partnership could be worth $10B+ to AWS by 2026. We need to hear that's actually happening.
Long story short, it all comes down to the balance between AWS growth and spending. Strong growth makes big capex okay. Weak growth makes it a disaster. That's what'll move the needle tonight.
What's everyone's take? Buying any post-report dip, or staying clear?
The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.
