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Amazon stock dips even though earnings beat expectations with strong cloud growth
AWS revenue rose 28% and topped estimates, but investors sold shares after Amazon projected $200 billion in capital spending for AI infrastructure.
- On Wednesday, Amazon reported strong fiscal first-quarter results, led by a 28% surge in Amazon Web Services revenue to $37.6 billion, beating analysts' expectations of $36.6 billion.
- Solid momentum followed recent deals with artificial intelligence leaders OpenAI and Anthropic, including a "major expansion" of the partnership with ChatGPT maker OpenAI to integrate models into Amazon Bedrock.
- Net sales rose 17% to $181.5 billion in the quarter, while capital expenditures hit $44.20 billion, up more than 76% from last year, signaling aggressive AI investment.
- Despite strong growth, Amazon shares dipped about 3.7% in extended trading after rival Google Cloud reported a 63% sales increase, as investors weigh Big Tech's roughly $600 billion AI spending.
- CEO Andy Jassy noted that 2026 spending will likely monetize over 2027 and 2028, while Anthropic committed to spend more than $100 billion on AWS over 10 years to run the Claude chatbot.
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Thanks to the strong demand for artificial intelligence, Amazon is exceeding expectations, with a net increase sustained by its cloud and Anthropic. ...
·Brussels, Belgium
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Amazon Stock Roars Back After Earnings Drop
(New York, New York) – Amazon (AMZN) shares staged a sharp turnaround after an initial post-earnings selloff rattled investors. The stock first fell from about $263 to $249, a drop of roughly $14 per share, or about 5.3%, as traders reacted to concerns over spending, margins, and the company’s heavy investment in artificial intelligence and cloud infrastructure. AMZN stock price by TradingView But the weakness did not last long. Buyers quickly…
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Total News Sources49
Leaning Left12Leaning Right9Center21Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 29%
C 50%
R 21%
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