Is Amazon’s Golden Goose Turning Into a Red Flag?
15
2
BTCCSquare news:
Amazon Web Services (AWS), long the profit engine behind Amazon's dominance, is showing signs of strain. While AWS revenue grew 17.5% to $30.9 billion in Q2, it lagged behind rivals Microsoft Azure (39%) and Google Cloud (32%). Margins contracted to 32.9%, the lowest since Q4 2023, as operating income growth slowed to single digits.
The cloud division's underperformance triggered an 8% stock drop despite overall earnings beats. This divergence highlights AWS's outsized role in Amazon's valuation narrative. Where cloud profits once justified the entire market cap, investors now face a sobering reality: e-commerce improvements may no longer offset decelerating cloud growth.
By:
Previous
Ex-Apple Engineer Launches Privacy-Focused Crypto Visa Card
Next
Coca-Cola’s Resilience and Valuation in Current Market Conditions
