I'm still thinking Amazon goes down after earnings today cause China tariffs might cut into Amazon retail profits and AWS might show slowdown like Google, msft showed and if they increase Capex spend like Google, that might also bring it down
It’s not that they slowed as in lost customers it’s that they didn’t gain as many customers. The targets that they have to hit can be egregious sometimes with the size of their companies. A 12% growth in market cap for amazon is 300 billion. That alone would be a mega cap company. It’s not sustainable. Google and Microsoft “slowing” cloud growth doesn’t mean Amazon went up it means that there was less demand than assumed before earnings. Google and Microsoft earnings were really really good but couldn’t hit those crazy targets.
ya man u are it had nothing to do with demand slowing down its because of capacity constraints, google and microsoft didn’t have enough infrastructure to meet their growing demand and as a results their revenue fell short. investors also skeptical of their >50 billion dollar investment into cloud center infrastructure as they dont see where this translates into gain for the company in short term. amazon def had these capacity constraints as ceo said back in november but they had a little more of a cautious outlook for Q4, so its possible they still beat.
Imo these 2 trillion dollar companies are still getting bigger. If they can make 10% growth in one quarter instead of 10.5% then the market freaks out. Earnings are just too risky. I learned that yesterday.
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u/Ok_Cry7572 WAH WAH WAHHHHH Feb 06 '25 edited Feb 06 '25
I'm still thinking Amazon goes down after earnings today cause China tariffs might cut into Amazon retail profits and AWS might show slowdown like Google, msft showed and if they increase Capex spend like Google, that might also bring it down