Amazon's cloud unit AWS reports weaker-than-expected revenue growth

Investors worried over first-quarter sales outlook

Amazon's retail business offsets cloud weak point with 7% online sales development

By Greg Bensinger, Deborah Mary Sophia

Feb 6 (Reuters) - Amazon.com investors drove shares down dramatically on Thursday due to weak point in the retailer's cloud computing system and lower-than-expected projections for first-quarter earnings and profit.

Amazon's shares fell as much as 5% in prolonged trade after the fourth-quarter earnings report, removing about $90 billion worth of stock market worth, disgaeawiki.info and were last down about 4.2%.

Amazon Chief Financial Officer Brian Olsavsky said he anticipated the capital investment run rate for this year to be roughly the like last year's 4th quarter when the business spent $26.3 billion. Amazon has actually increased costs in particular to help establish expert system software.

The business's sales quote for wiki.snooze-hotelsoftware.de the very first quarter failed to fulfill experts ´ expectations, even if a negative impact of $2 billion from last year ´ s Leap Day is included. The company said it prepares for wiki.rrtn.org in between $151 billion and $155 billion, compared with the average price quote of $158 billion. The cloud system, Amazon Web Services, reported a 19% rise in earnings to $28.79 billion, falling short of price quotes of $28.87 billion, trademarketclassifieds.com according to information compiled by LSEG. Amazon signs up with smaller sized cloud service providers Microsoft and Google in reporting weak cloud numbers.

Ceo Andy Jassy said the irregular circulation of computer system chips had kept back some development in AWS. "We could be growing faster, if not for some of the constraints on capacity, and they are available in the kind of chips from our third-party partners coming a little bit slower than previously," he informed investors on a conference call.

The cloud weak point takes place as financiers have actually grown progressively impatient with Big Tech's multibillion-dollar capital spending and are starving for returns from large investments in AI.

"After really strong third-quarter numbers, this quarter the development rates all missed out on. That's what the marketplace doesn't wish to hear," said Daniel Morgan, senior portfolio supervisor at Synovus Trust. He said this is particularly true after the emergence of new competitors in artificial intelligence such as China's DeepSeek. Like its rivals, Amazon is investing heavily in artificial intelligence software development. At its annual AWS conference in December it flaunted new AI software application designs that it hopes will draw new service and customer customers. Later this month, it is set to release its long-awaited Alexa generative expert system voice service after hold-ups over concerns about the quality and akropolistravel.com speed, Reuters reported earlier this week.

Competitors Microsoft and library.kemu.ac.ke Google parent Alphabet both posted slowing cloud growth in in 2015 ´ s 4th quarter, sending shares lower. The business, along with Meta Platforms, said costs to develop infrastructure for synthetic intelligence software added to dramatically higher awaited capital expenditures for 2025, an overall of around $230 billion between them.

Amazon's retail company helped offset the cloud weakness, with the company reporting online sales development of 7% in the quarter to $75.56 billion. That compared with estimates of $74.55 billion.

Amazon forecast operating earnings of $14 billion to $18 billion for the very first quarter of 2025, missing a typical expert price quote of $18.35 billion.

The business reported income of $187.8 billion in the 4th quarter, compared with the quote of $187.30 billion, according to data put together by LSEG.

Advertising sales, surgiteams.com a carefully seen metric, increased 18% to $17.3 billion. That compares to the average quote of $17.4 billion.

Net income nearly doubled to $20 billion from $10.6 billion a year previously. The Seattle retailer reported revenues of $1.86 per share, compared with expectations of $1.49 per share.

(Reporting by Deborah Sophia in Bengaluru and Greg Bensinger in San Francisco; Additional reporting by Noel Randewich in Oakland, California; Editing by Shounak Dasgupta and Matthew Lewis)