Amazon Earnings Preview: Cloud Growth Focus Amidst Big Tech Disruptions
Key Metrics:
* EPS: $1.50 (estimated)
* Revenue: $187.3 billion (estimated)
* AWS Revenue: $28.8 billion (estimated)
* Ad Revenue: $17.3 billion (estimated)
Key Points:
* Amazon reports quarterly earnings after market close on Thursday.
* Rivalry intensifies in cloud computing, with competitors Microsoft and Google reporting missed expectations.
* Amazon invests heavily in AI infrastructure to meet demand.
* Investors anticipate insights on DeepSeek's recent AI success and its impact on Amazon's AI services.
* Advertising revenue expected to surge, driven by Prime Video monetization efforts.
* Amazon's cloud business (AWS) remains a key growth driver.
Market Context:
* Microsoft and Google shares declined post-earnings due to weaker-than-expected cloud sales.
* DeepSeek's emergence raises questions about AI competition in the Big Tech landscape.
Analysts' Outlook:
* Analysts expect Amazon to report solid growth, despite market volatility.
* AWS revenue and advertising operations are seen as bright spots.
* Investors will closely monitor Amazon's response to DeepSeek and its implications for its AI strategy.