{"id":682544,"date":"2025-08-01T04:45:23","date_gmt":"2025-08-01T01:45:23","guid":{"rendered":"https:\/\/buradabiliyorum.com\/en\/amazon-posts-weak-cloud-growth-while-rivals-google-microsoft-thrive\/"},"modified":"2025-08-01T04:45:23","modified_gmt":"2025-08-01T01:45:23","slug":"amazon-posts-weak-cloud-growth-while-rivals-google-microsoft-thrive","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/amazon-posts-weak-cloud-growth-while-rivals-google-microsoft-thrive\/","title":{"rendered":"Amazon posts weak cloud growth while rivals Google, Microsoft thrive"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2d61cd1e811\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2d61cd1e811\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/amazon-posts-weak-cloud-growth-while-rivals-google-microsoft-thrive\/#%E2%80%9CAmazon_posts_weak_cloud_growth_while_rivals_Google_Microsoft_thrive%E2%80%9D\" >&#8220;Amazon posts weak cloud growth while rivals Google, Microsoft thrive&#8221;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CAmazon_posts_weak_cloud_growth_while_rivals_Google_Microsoft_thrive%E2%80%9D\"><\/span>&#8220;Amazon posts weak cloud growth while rivals Google, Microsoft thrive&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/nypost.com\/wp-content%2Fuploads%2Fsites%2F2%2F2025%2F07%2Famazon-q2-earnings.jpg?quality%3D90%26strip%3Dall%261753971829\" \/><\/p>\n<div>\n<p>Amazon on Thursday forecast\u00a0third-quarter sales above market estimates, but failed to live up to lofty expectations for its\u00a0Amazon\u00a0Web Services cloud computing unit after rivals handily beat expectations.<\/p>\n<p>Shares fell by more than\u00a03%\u00a0in after-hours\u00a0trading after finishing regular trading up 1.7% to $234.11. Both Google-parent Alphabet\u00a0and Microsoft\u00a0posted big cloud computing revenue gains this month.<\/p>\n<p>AWS profit margins also contracted.\u00a0Amazon\u00a0said they were 32.9% in the second quarter,\u00a0down from\u00a039.5% in this year\u2019s first quarter and 35.5% a year ago. The second-quarter margin results were at their lowest level since the final quarter of 2023.<\/p>\n<figure class=\"nyp-slideshow-modal-image wp-block-image aligncenter size-large\"><figcaption>AWS, the cloud unit, reported a 17.5% increase in revenue to $30.9 billion. By comparison, sales for Microsoft\u2019s Azure rose 39% and Google Cloud gained 32%. <span class=\"credit\">REUTERS<\/span><\/figcaption><\/figure>\n<p>AWS, the cloud unit, reported a 17.5% increase in revenue to $30.9 billion, edging past expectations of $30.77 billion. By comparison, sales for Microsoft\u2019s Azure rose 39% and Google Cloud gained 32%.<\/p>\n<p>After competitors\u2019 strong showing, \u201cAWS is lingering at 17% growth,\u201d said Gil Luria, a D.A. Davidson analyst. \u201cThat is very dis<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ointing, even to the point where if Microsoft\u2019s Azure continues to grow at these rates, it may overtake AWS as the largest cloud provider by the end of next year.\u201d<\/p>\n<aside class=\"single__inline-module aligncenter wp-block-nypost-editor-primary-tag\">\n<\/aside>\n<p>Amazon\u00a0expects\u00a0total\u00a0net sales to be between $174.0 billion and $179.5 billion in the third quarter, compared with analysts\u2019 average estimate of\u00a0$173.08 billion, according to data compiled by LSEG.\u00a0The range for operating income in the current quarter was also light.\u00a0Amazon\u00a0forecast between $15.5 billion and $20.5 billion, compared with expectations of $19.45 billion.<\/p>\n<p>Both Microsoft and Alphabet cited massive demand for their cloud computing services to boost their already huge capital spending, but also noted they still faced capacity constraints that limited their ability to meet demand.<\/p>\n<p>AWS represents\u00a0a small part of\u00a0Amazon\u2019s total revenue,\u00a0but it\u00a0is a key driver of profits, typically accounting for about 60% of\u00a0Amazon\u2019s\u00a0overall operating income.<\/p>\n<figure class=\"nyp-slideshow-modal-image wp-block-image aligncenter size-large\"><figcaption>While\u00a0Amazon\u00a0has poured billions\u00a0of dollars into\u00a0AI infrastructure, analysts have said the lack of a strong AI model from AWS is causing concerns that the company could be trailing rivals in AI development. CEO Andy Jassy, above. <span class=\"credit\">REUTERS<\/span><\/figcaption><\/figure>\n<p>While\u00a0Amazon\u00a0has poured billions\u00a0of dollars into\u00a0AI infrastructure, analysts have said the lack of a strong AI model from AWS is causing concerns that the company could be trailing rivals in AI development.<\/p>\n<p>The AWS results are \u201calarming,\u201d said Dave Wagner, portfolio manager for Aptus Capital Advisers, which holds\u00a0Amazon\u00a0shares. \u201cAmazon\u00a0is an operating leverage story and they had to be able to grow, at least relative to costs. And they haven\u2019t done it.\u201d<\/p>\n<p>The Seattle-based retailer posted online store sales of $61.5 billion, an 11% gain. Advertising sales, a fast-growing segment for\u00a0Amazon, were up 23% to $15.7 billion.<\/p>\n<p>Investors have been watching\u00a0Amazon\u2019s e-commerce unit for any signs that tariff-related uncertainty has dashed consumer confidence. US data showed consumer spending rose moderately in June.<\/p>\n<figure class=\"nyp-slideshow-modal-image wp-block-image aligncenter size-large\"><figcaption>Amazon posted online store sales of $61.5 billion, an 11% gain.  <span class=\"credit\">REUTERS<\/span><\/figcaption><\/figure>\n<p>President\u00a0Trump\u2019s\u00a0tariffs have dampened the US retail industry, leaving major retailers and consumer goods companies scrambling to protect their margins or resort to price increases, all while ensuring consumer demand remains intact.<\/p>\n<p>Trump has said the levies will bring manufacturing power and jobs back to the US.<\/p>\n<p>Analysts had said\u00a0Amazon\u2019s focus on low prices, quick delivery and the sheer number of product categories helped cement its position as the No. 1 e-commerce retailer for US consumers, giving it an edge over rivals.<\/p>\n<p>Amazon\u00a0has said it was pushing suppliers to pull forward inventories to ensure supply and keep prices as low as possible. Still, prices for goods made in China and sold on\u00a0Amazon.com have been rising faster than overall inflation, Reuters reported last month.<\/p>\n<p>The company has been\u00a0trimming jobs\u00a0in its corporate offices, including at its AWS, books, devices and podcasting units. Its efforts were showing results: headcount fell by 14,000 workers from this year\u2019s first quarter, bringing the total to 1.46 million.<\/p>\n<\/p><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" >Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" target=\"_blank\" >News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/nypost.com\/2025\/07\/31\/business\/amazon-posts-weak-cloud-growth-while-rivals-google-microsoft-thrive\/\" target=\"_blank\" >Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;Amazon posts weak cloud growth while rivals Google, Microsoft thrive&#8221; Amazon on Thursday forecast\u00a0third-quarter sales above market estimates, but failed to live up to lofty expectations for its\u00a0Amazon\u00a0Web Services cloud computing unit after rivals handily beat expectations. Shares fell by more than\u00a03%\u00a0in after-hours\u00a0trading after finishing regular trading up 1.7% to $234.11. Both Google-parent Alphabet\u00a0and Microsoft\u00a0posted&#8230;<\/p>\n","protected":false},"author":1,"featured_media":682545,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2025\/07\/amazon-q2-earnings.jpg?quality=75&strip=all&1753971829&w=1024","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[157926,2758,70937,70237,77891,5015,93342],"class_list":["post-682544","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-7-31-25","tag-amazon","tag-artificial-intelligence","tag-corporate-earnings","tag-e-commerce","tag-retailers","tag-tariffs"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/682544","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=682544"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/682544\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/682545"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=682544"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=682544"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=682544"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}