The world’s largest online retailer disappointed the Börsians with the growth of his cloud division AWS and a cautious profit view. For the share price, the after -board trade was down by six and a half percent.
Amazon presented numbers for the forecasts of the analysts for the past quarter. The sales of the world’s largest online retailer rose by 13 percent to $ 167.7 billion (146.7 billion euros) in the year, while the experts had an average of $ 162 billion. The profit jumped up by more than a third to $ 18.2 billion.
AWS grows slower than rivals
One reason for the downward descent of the stock was possibly Amazon’s forecast for the current quarter. The group promised a range of the operational result, which is clearly below the expectations of the analyst: inside. They had expected an average of $ 19.4 billion. Amazon runs out of $ 15.5 to 20.5 billion.
The growth of the Cloud division AWS in the past quarter with 17.5 percent was just on average on the average of market expectations. AWS relies on the AI boom and competes with the Cloud areas of Microsoft
AI competition
AWS has been number one for cloud services such as computing power and storage from the network for years. However, all three rivals are currently in the expansion of their data centers, especially for AI applications. In the past quarter alone, Amazon’s capital investments were over $ 31 billion. CFO Brian Olsavsky showed that things should continue in the second half of the year at a similar pace. Investors are wondering whether the high investments for Amazon pay off enough.
Amazon boss Andy Jassy countered in a conference call with analysts, the industry is only at the beginning with artificial intelligence. Amazon wants to attract more customers with lower costs for the operator of her AI software. And Amazon still couldn’t quickly expand the capacities to keep up with demand.
Open questions about tariffs
When asked by analyst: Inside on the consequences of the import tariffs introduced by US President Donald Trump said Jassy said that it was still unsure who would end up with the higher costs. In the first half of the year, Amazon had not felt a decline in demand. Many articles that are sold in the United States through the Group’s platform come from abroad and are affected by the import duties.