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AWS faces growth and market share challenges as Azure and Google Cloud recently outpaced them in revenue growth. Despite AWS's margin decline and AI innovation concerns, their operating margins remain superior to Google Cloud. Key risks include capital allocation in custom silicon (Trainium) and accounting assumptions, but AWS's scale and experience provide long-term optimism.
The company reported revenue growth for the second quarter but saw its stock price drop.
The Trade Desk's shares plummeted nearly 40% and analysts blamed a growing rivalry with Amazon. Amazon has expanded its ad business with a Roku deal and live sports on Prime Video.
Goldman Sachs Group Inc (NYSE:GS, ETR:GOS) analysts have raised their 12-month price target for Amazon.com Inc (NASDAQ:AMZN) shares to $240 from $220, reiterating a ‘Buy' rating on the eCommerce giant and emphasizing a constructive multi-year outlook across the company's core businesses. The upward revision follows Amazon's second quarter earnings report, which largely exceeded expectations and reinforced analyst confidence in the company's positioning across eCommerce, cloud, and advertising.
Shares of The Trade Desk fell almost 40% on Friday and headed for their worst day on record. The ad-tech company reported better-than-expected results for the second quarter, but analysts are increasingly concerned about competition from Amazon.
AMZN beats Q2 estimates, but Q3 guidance disappoints. AWS faces margin pressure amid cloud competition.
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Despite considerable growth in both revenue and profits, Amazon's stock (NASDAQ: AMZN) performance has raised concerns among investors due to a mix of slowing growth in its vital cloud division, fierce competition in artificial intelligence (AI), a high valuation, and overarching economic pressures.
Key Points in This Article: Amazon (AMZN), Meta Platforms (META), and Microsoft (MSFT) have fueled AI growth with strong free cash flow until now.
Amazon's Zoox has been granted an exemption by federal vehicle safety regulators that will pave the way for demonstration of its driverless robotaxis. As part of the move, the National Highway Traffic Safety Administration closed a 2023 probe into Zoox's self-certification process.