By Deborah Mary Sophia

Feb 5 (Reuters) - The pressure is on Amazon.com to provide on lofty expectations for cloud computing in its fourth-quarter outcomes on Thursday, after Microsoft and Google's uninspired reports jolted financier faith in Big Tech's billion-dollar investments in AI.

Shares of major tech business rose in the past 2 years on the belief that enormous datacenter needs for artificial-intelligence technologies would power investment for several years.

But that was before Chinese startup DeepSeek said it had attained AI breakthroughs at a fraction of the cost, precipitating a selloff in innovation stocks that some say was overdue.

Still, users.atw.hu Amazon may be better positioned than competitors to take advantage of cheaper AI, analysts state, due to its massive cloud business and clashofcryptos.trade lower exposure to pricey large-language models that power apps like ChatGPT.

Amazon Web Services, the world's largest cloud services service provider, is expected to publish its greatest revenue boost in 8 quarters at 19.3%, according to information put together by LSEG.

But Microsoft and bbarlock.com Meta were both required to safeguard their AI budget last week, and shares of Google-parent Alphabet slumped 8% on Wednesday after it said it would be spending more on capex than experts prepared for.

"Microsoft and Google results have put even more of a microscope on Amazon's cloud development," said Dave Wagner, portfolio manager at Aptus Capital Advisors, which holds shares in all 3 innovation business.

"But if Amazon can crush it on their cloud numbers, the marketplace's going to definitely enjoy that report."

The business was the first big cloud service to welcome DeepSeek's AI models last month and has said its capital costs, forum.pinoo.com.tr mainly on AI, would be more than the $75 billion it estimated for 2024.

Slowing development at Microsoft Azure and Google Cloud, the 2nd- and third-biggest cloud players, has actually stimulated some care from experts about AWS' efficiency.

"Microsoft said it was capacity constrained, Google said it was capability constrained. More than likely, Amazon is going to state it may have been capability constrained also which's why its growth rate isn't quite as much as what the marketplace might have expected," said Bob O'Donnell, primary expert at TECHnalysis Research.

Some experts see the weak point at competitors as a sign that Amazon may have caught up in the AI race through efforts consisting of doubling its financial investment in Anthropic and using a large choice of AI designs on its cloud platform.

"We really believe that AWS is regaining share. It had been growing a lot slower than Microsoft Azure and Google Cloud for an amount of time, but we think that as Amazon has caught up on its AI offering, it might have less of a deceleration than Azure and Google Cloud," D.A. Davidson analyst Gil Luria said.

The business has maintained a higher appraisal than some of its competitors, with an existing forward price-to-earnings ratio of nearly 39. Microsoft's forward P/E is 29 and Alphabet's 22.4, according to LSEG information.

RETAIL STRENGTH

The e-commerce giant's outcomes are also likely to gain from a healthy holiday shopping season, hb9lc.org after rival retailers such as Target and a variety of apparel business released rosy forecasts over the previous month.

Amazon's North American sales for the fourth quarter are projected to rise 9% year-on-year. After a downturn in online sales growth previously this year, analysts state Amazon is primed for a rebound in the retail company, dokuwiki.stream which has influenced its post-earnings share movements over the previous two quarters.

Data from Adobe Analytics showed U.S. shoppers spent lavishly online between November and December 2024, spending more than $240 billion, drawn by deep discounts on whatever from TVs to toys.

The vacation spending development rate of 8.7% nearly doubled from the 4.9% tape-recorded in 2023, the information revealed.

Amazon has actually also attempted to improve delivery times and expanded item merchandise, including its focus on grocery, drug store and style - moves experts state will assist propel development.

"Most signs are that it was an excellent quarter. There was an excellent holiday season for the customer therefore there's a lot of factor to think Amazon will have succeeded because side of the organization," Luria said.

(Reporting by Deborah Sophia in Bengaluru; Editing by Pooja Desai)