Amazon’s Cloud Performance Key to Post-Earnings Stock Lift
Amazon's stock (AMZN) has underperformed relative to its hyperscaler peers this year, largely due to slower growth in its Amazon Web Services (AWS) segment. As the company prepares to report Q3 earnings on October 23, investors are watching for signs of a turnaround in AWS growth and margins.
Despite being the cloud market leader and well-positioned for AI adoption, Amazon faces near-term challenges if AWS continues to lag behind competitors like Microsoft Azure and Google Cloud. The company's valuation remains heavily tied to this high-margin business unit.
Analysts maintain a bullish long-term outlook, citing Amazon's diversified business model and dominant cloud position. However, the stock may face continued pressure until AWS demonstrates clearer momentum in both revenue growth and profitability.
