Explore the latest developments concerning Amazon set to.
Amazon set to report earnings with AI spend, cloud growth, job cuts in focus
Amazon shares plunged more than 10% in extended trading Thursday after the company posted mixed fourth-quarter earnings, and boosted its full-year spending forecast to $200 billion.
Here's how the company did, compared with estimates from analysts polled by LSEG:
Amazon said it expects capital expenditures to continue to climb higher this year as it aggressively invests in data centers and other infrastructure to meet a surge in artificial intelligence demand.
The company projected capex to hit $200 billion this year, while analysts were expecting $146.6 billion, according to FactSet.
"With such strong demand for our existing offerings and seminal opportunities like AI, chips, robotics, low earth orbit satellites, we expect to invest about $200 billion in capital expenditures across Amazon in 2026, and anticipate strong long-term return on invested capital," CEO Andy Jassy said in a statement.
Amazon Cloud Sales in Focus After Microsoft’s $500 Billion Rout
(Bloomberg) — All eyes will be on Amazon.com Inc.’s cloud business when the technology giant reports earnings on Thursday, after shares of Microsoft Corp. plunged last week due in part to slowing growth at its key cloud-computing platform.
This was not an issue for Amazon’s October earnings, as its shares jumped almost 10% following better than expected revenue from Amazon Web Services, also known as AWS. Now, however, fear is rippling through the tech sector, and Amazon investors are increasingly concerned that the slowdown at Microsoft’s Azure indicates broader weakness for cloud providers. Microsoft shares are down more than 16% since the report on Jan. 28, erasing roughly $500 billion in market value.
Hydrogen-Rich Water Cup Portable Electric Hydrogen Rich Water Generator Bottle Titanium Quality Filter Healthcare Water Cup USB
For hyperscalers like Amazon, how much capex is too much?
Investors have given the world’s tech giants a long leash when it comes to dumping hundreds of billions of dollars into their respective armadas of AI data centers.
This earnings season is giving us signals on how much leash is left.
Massive capex spender Amazon is due to report results and refine its AI investment plans Thursday. On Wednesday, fellow hyperscaler Alphabet gave eye-watering forecasts for capex, saying it would spend between $175 billion and $185 billion on capex this year, much higher than Wall Street’s consensus expectations for about $116 billion.
A key question has emerged about capex in recent quarters: are investors growing impatient with airy executive assurances about coming AI dominance, as tech companies go all in with billions of dollars of bets on the future?
For more detailed information, explore updates concerning Amazon set to.
0 Comments