Friday, August 4, 2023

"Amazon earnings beat brushes off mounting cloud concerns – for now" (AMZN)

From Yahoo Finance, August 4:

Amazon (AMZN) execs still have their heads in the cloud, as they should.

The tech giant crushed it in the second quarter. And just like that, investors' concerns about the ongoing drop in growth for its cloud division, Amazon Web Services (AWS), washed away — at least temporarily — as the stock climbed 10% to hit a one-year high in early trading on Friday.

The company clocked a small beat on AWS sales while notching some major wins when it came to operating income, operating margins, and its third quarter outlook.

"This is as emphatic a beat and as emphatic a raise as we've seen from Amazon in 18 months," Roth MKM managing director Rohit Kulkarni told Yahoo Finance Live (video above).

That said, Amazon hasn't completely vanquished Wall Street's reservations about decelerating cloud sales. Though AWS managed to notch a beat in Q2, the division's growth trend line has been in decline for more than a year....


AMZN is still up 9.32% (+$12.01) as the rest of the market fades, $140.90 last.