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Amazon shares sink as spending on AI overshadows growth in cloud unit
Amazon’s cloud computing unit is growing steadily, keeping pace with AI demand, but the e-commerce giant’s massive spending on AI data centers and weaker advertising performance are worrying investors.
Summary
Amazon’s cloud computing unit is growing steadily, keeping pace with AI demand, but the e-commerce giant’s massive spending on AI data centers and weaker advertising performance are worrying investors. Amazon on Thursday reported third-quarter revenue of $201.9 billion, slightly missing expectations. Its profit was $20.7 billion, which also fell short of expectations and was down from the same period a year ago. Amazon said the decline was due to gains it recorded a year earlier from its investment in AI company Anthropic.
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