Amazon Soars as Cloud Revenue Surge Allays Fears over Ballooning AI Bets
Amazon’s profit more than tripled as cloud growth eased concerns that heavy AI spending will hurt returns, while Apple fell 7.4%, analysts said.
- On Monday, the Australian sharemarket is set to open lower, with futures pointing to an 85-point loss, or 1 per cent, at the open.
- US stocks finished a wild July on Friday with gains, yet rising oil prices continue to worsen worries about inflation staying high.
- Amazon leaped 15.3 per cent and Samsung Electronics surged at least 26.8 per cent on Friday, while Apple shares declined 7.4 per cent despite beating profit expectations.
- Federal Reserve Chairman Kevin Warsh promised on Wednesday to return inflation to 2 per cent but refused to outline how he plans to achieve that target.
- Yields on the 10-year Treasury rose to 4.71 per cent late Thursday, pushing average long-term US mortgage rates to their highest level in a year.
31 Articles
31 Articles
Despite strong second-quarter earnings, the stock prices of U.S. big tech companies are showing mixed results depending on whether their AI investments are monetizing. Microsoft and Amazon, having demonstrated cloud revenue growth, surged, while Alphabet and Meta fell due to significant concerns regarding capital expenditures. The focus of the AI competition is shifting from technological prowess to actual revenue contribution.
Signs of Strain: Tech Earnings Reveal Cracks in the AI Spending Frenzy
Big Tech just posted another round of quarterly results. The numbers look mixed at best. Investors swung from euphoria to doubt in a matter of days. Apple shed more than $350 billion in market value after a warning on component costs. IBM lost over a quarter of its worth in one session. Yet Amazon shares jumped 15 percent. These wild moves don’t scream stability. They hint at deeper unease. The Earnings Report Card Meta’s free cash flow collapse…
Watch AWS CEO Says AI Business Is 'Just Massive'
Amazon Web Services CEO Matt Garman says the potential artificial intelligence business is "just massive." He says the company will keep investing in capital expenditures as it tries to keep up with demand. He speaks to Ed Ludlow on "Bloomberg Tech."
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