Latest news with #BrianOlsavsky
Yahoo
01-08-2025
- Business
- Yahoo
Amazon Stock Is Falling. Analysts Say to Buy the Dip.
Key Takeaways Amazon shares tumbled in the wake of the company's quarterly results, but analysts say there's an opportunity to buy the dip. AWS may have underwhelmed investors relative to the cloud growth seen from peers like Microsoft and Google. UBS analysts said traders shouldn't be scared off by Amazon's growing investments in AI (AMZN) shares plunged after the company's quarterly results, as investors may have been hoping for stronger cloud growth. Some analysts, though, are raising their price targets. JPMorgan analysts said they 'would buy the pullback,' as Amazon shares have tumbled more than 6% in premarket trading Friday. The bank raised its price target to $265 from $255, implying 23% upside. Amazon Web Services is a likely culprit for the stock slump, JPMorgan said. The cloud division's revenue growth, while in line with analysts' expectations, didn't accelerate from the previous quarter. Meanwhile, rival cloud offerings Microsoft (MSFT) Azure and Alphabet's (GOOGL) Google Cloud Platform delivered breakout performances. On the company's earnings call, CFO Brian Olsavsky said Amazon spent $31.4 billion in capital expenditures in the second quarter and expects to maintain that level of investment through 2025. 'AWS continues to be the primary driver, as we invest to support demand for our AI services,' Olsavsky said, according to a transcript provided by AlphaSense. Analysts at UBS, which maintained a price target of $271, said investors shouldn't be too worried about growing capex. '[T]o sell the stock is to believe that management and the board are making the economically irrational decision, in our view, to invest an increasing amount of capital,' UBS said. 'But we find that to be a difficult scenario to believe, especially for what has been one of the best capital allocators in our space.' Citi, meanwhile, raised its price target to $270, arguing that the increase in investment 'highlights continued demand strength as AWS alleviates its infrastructure capacity constraints.' Read the original article on Investopedia Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Fashion Network
01-08-2025
- Business
- Fashion Network
Amazon shares decline despite strong Q2 revenue performance
Amazon shares fell more than 7% on Friday in European trading after the company posted second-quarter results that exceeded analysts' revenue expectations but disappointed investors with slower growth in its cloud division, Amazon Web Services (AWS), and a cautious profit outlook. The drop followed a similar 7% decline in after-hours trading on Thursday, despite Amazon stock closing the regular session up 1.7% at $234.11. In the second quarter, Amazon's revenue rose 13% year-over-year to $167.7 billion, surpassing the average analyst estimate of around $162 billion. Net income increased by more than one-third to $18.2 billion, reflecting strong operational performance across its core business lines. Still, investors reacted negatively to the company's forecast for the current quarter. Amazon projected operating income in the range of $15.5 billion to $20.5 billion, with the lower end falling short of Wall Street's expectations, which averaged $19.4 billion. The main concern was AWS, Amazon's long-dominant cloud platform. AWS revenue increased by 17.5%, roughly in line with market expectations but significantly below growth at competitors. Microsoft Azure posted a 39% year-over-year increase in cloud revenue, while Google Cloud grew nearly 32%. All three cloud giants are investing heavily in data center expansion to support rising demand for artificial intelligence capabilities. Amazon disclosed capital expenditures of over $31 billion in Q2, with chief financial officer Brian Olsavsky stating that investment would continue at a similar pace in the second half of the year. This raised concerns among investors about whether Amazon's aggressive infrastructure spending is delivering sufficient returns. Despite being the global leader in cloud services, AWS is facing increasing pressure from Microsoft and Google in the race to lead AI-powered cloud infrastructure. Amazon CEO Andy Jassy defended the company's strategy during a call with analysts, saying AI adoption is still in its early stages. He emphasized Amazon's focus on offering lower operating costs for clients deploying AI software and acknowledged that demand is currently outpacing AWS's ability to scale. In response to questions about tariffs introduced under former U.S. President Donald Trump, Jassy said it remains unclear who will ultimately bear the cost. He added that Amazon has not seen any significant decline in demand during the first half of the year, even though many goods sold on its U.S. platform are imported and subject to tariffs.
Fashion Network
01-08-2025
- Business
- Fashion Network
Amazon shares decline despite strong Q2 revenue performance
Amazon shares fell more than 7% on Friday in European trading after the company posted second-quarter results that exceeded analysts' revenue expectations but disappointed investors with slower growth in its cloud division, Amazon Web Services (AWS), and a cautious profit outlook. The drop followed a similar 7% decline in after-hours trading on Thursday, despite Amazon stock closing the regular session up 1.7% at $234.11. In the second quarter, Amazon's revenue rose 13% year-over-year to $167.7 billion, surpassing the average analyst estimate of around $162 billion. Net income increased by more than one-third to $18.2 billion, reflecting strong operational performance across its core business lines. Still, investors reacted negatively to the company's forecast for the current quarter. Amazon projected operating income in the range of $15.5 billion to $20.5 billion, with the lower end falling short of Wall Street's expectations, which averaged $19.4 billion. The main concern was AWS, Amazon's long-dominant cloud platform. AWS revenue increased by 17.5%, roughly in line with market expectations but significantly below growth at competitors. Microsoft Azure posted a 39% year-over-year increase in cloud revenue, while Google Cloud grew nearly 32%. All three cloud giants are investing heavily in data center expansion to support rising demand for artificial intelligence capabilities. Amazon disclosed capital expenditures of over $31 billion in Q2, with chief financial officer Brian Olsavsky stating that investment would continue at a similar pace in the second half of the year. This raised concerns among investors about whether Amazon's aggressive infrastructure spending is delivering sufficient returns. Despite being the global leader in cloud services, AWS is facing increasing pressure from Microsoft and Google in the race to lead AI-powered cloud infrastructure. Amazon CEO Andy Jassy defended the company's strategy during a call with analysts, saying AI adoption is still in its early stages. He emphasized Amazon's focus on offering lower operating costs for clients deploying AI software and acknowledged that demand is currently outpacing AWS's ability to scale. In response to questions about tariffs introduced under former U.S. President Donald Trump, Jassy said it remains unclear who will ultimately bear the cost. He added that Amazon has not seen any significant decline in demand during the first half of the year, even though many goods sold on its U.S. platform are imported and subject to tariffs.
Fashion Network
01-08-2025
- Business
- Fashion Network
Amazon shares decline despite strong Q2 revenue performance
Amazon shares fell more than 7% on Friday in European trading after the company posted second-quarter results that exceeded analysts' revenue expectations but disappointed investors with slower growth in its cloud division, Amazon Web Services (AWS), and a cautious profit outlook. The drop followed a similar 7% decline in after-hours trading on Thursday, despite Amazon stock closing the regular session up 1.7% at $234.11. In the second quarter, Amazon's revenue rose 13% year-over-year to $167.7 billion, surpassing the average analyst estimate of around $162 billion. Net income increased by more than one-third to $18.2 billion, reflecting strong operational performance across its core business lines. Still, investors reacted negatively to the company's forecast for the current quarter. Amazon projected operating income in the range of $15.5 billion to $20.5 billion, with the lower end falling short of Wall Street's expectations, which averaged $19.4 billion. The main concern was AWS, Amazon's long-dominant cloud platform. AWS revenue increased by 17.5%, roughly in line with market expectations but significantly below growth at competitors. Microsoft Azure posted a 39% year-over-year increase in cloud revenue, while Google Cloud grew nearly 32%. All three cloud giants are investing heavily in data center expansion to support rising demand for artificial intelligence capabilities. Amazon disclosed capital expenditures of over $31 billion in Q2, with chief financial officer Brian Olsavsky stating that investment would continue at a similar pace in the second half of the year. This raised concerns among investors about whether Amazon's aggressive infrastructure spending is delivering sufficient returns. Despite being the global leader in cloud services, AWS is facing increasing pressure from Microsoft and Google in the race to lead AI-powered cloud infrastructure. Amazon CEO Andy Jassy defended the company's strategy during a call with analysts, saying AI adoption is still in its early stages. He emphasized Amazon's focus on offering lower operating costs for clients deploying AI software and acknowledged that demand is currently outpacing AWS's ability to scale. In response to questions about tariffs introduced under former U.S. President Donald Trump, Jassy said it remains unclear who will ultimately bear the cost. He added that Amazon has not seen any significant decline in demand during the first half of the year, even though many goods sold on its U.S. platform are imported and subject to tariffs.
Fashion Network
01-08-2025
- Business
- Fashion Network
Amazon shares decline despite strong Q2 revenue performance
Amazon shares fell more than 7% on Friday in European trading after the company posted second-quarter results that exceeded analysts' revenue expectations but disappointed investors with slower growth in its cloud division, Amazon Web Services (AWS), and a cautious profit outlook. The drop followed a similar 7% decline in after-hours trading on Thursday, despite Amazon stock closing the regular session up 1.7% at $234.11. In the second quarter, Amazon's revenue rose 13% year-over-year to $167.7 billion, surpassing the average analyst estimate of around $162 billion. Net income increased by more than one-third to $18.2 billion, reflecting strong operational performance across its core business lines. Still, investors reacted negatively to the company's forecast for the current quarter. Amazon projected operating income in the range of $15.5 billion to $20.5 billion, with the lower end falling short of Wall Street's expectations, which averaged $19.4 billion. The main concern was AWS, Amazon's long-dominant cloud platform. AWS revenue increased by 17.5%, roughly in line with market expectations but significantly below growth at competitors. Microsoft Azure posted a 39% year-over-year increase in cloud revenue, while Google Cloud grew nearly 32%. All three cloud giants are investing heavily in data center expansion to support rising demand for artificial intelligence capabilities. Amazon disclosed capital expenditures of over $31 billion in Q2, with chief financial officer Brian Olsavsky stating that investment would continue at a similar pace in the second half of the year. This raised concerns among investors about whether Amazon's aggressive infrastructure spending is delivering sufficient returns. Despite being the global leader in cloud services, AWS is facing increasing pressure from Microsoft and Google in the race to lead AI-powered cloud infrastructure. Amazon CEO Andy Jassy defended the company's strategy during a call with analysts, saying AI adoption is still in its early stages. He emphasized Amazon's focus on offering lower operating costs for clients deploying AI software and acknowledged that demand is currently outpacing AWS's ability to scale. In response to questions about tariffs introduced under former U.S. President Donald Trump, Jassy said it remains unclear who will ultimately bear the cost. He added that Amazon has not seen any significant decline in demand during the first half of the year, even though many goods sold on its U.S. platform are imported and subject to tariffs.
