NewAmazon Rallies on Cloud Optimism as It Chases Microsoft for AI BusinessRead More
July 21, 2024

Amazon Improves on cloud optimism as it chases Microsoft for AI business

  • November 17, 2023
  • 2 min read
Amazon Improves on cloud optimism as it chases Microsoft for AI business

According to the stock market news reports last Friday, Amazon rose by 7% and showed excellent growth in the stock market index. The reason behind this success is hidden in its profitable cloud business to target the Artificial Intelligence market. They are up for competition against Microsoft in the AI business.

Amazon Rallies on Cloud Optimism

Moreover, the overall e-commerce market lies at almost $90 billion, with a price of $128 on its last traded share. Speaking of Microsoft, they rose to 1.5% in the market, whereas the Alphabet went down with minus 1.3%.

The Amazon CEP showed enthusiasm while talking about the growth in the market. He said the market is getting stability in the cloud business as people are showing interest in a large expansion opportunity. They are hoping to get more growth in the last three months of 2023.

He discussed the AI opportunity for Amazon web services. According to them, the technology has the capacity to take the Yearly revenue of Amazon to new heights in the coming years.

As customers cut costs in response to the pandemic, Wall Street cheered Amazon’s positive commentary on the business that generates almost all its profits.

Amazon Rallies on Cloud Optimism

According to LSEG data, 26 brokerages have increased their price targets on the stock, bringing their median view to $173.

Amazon shares have rallied about 40% this year. However, they have lost nearly 8% in the past two days.  It is because of Alphabet’s warning about the cloud that customers were curbing spending.

Amazon Rallies on Cloud Optimism

Amazon Web Services‘ growth of 12.3% lagged behind Microsoft’s Azure cloud business. However, the market expectations were exceeded by 29%. During the period, Google Cloud’s share increased to 22.5%.

Instead of Amazon’s larger cloud-based network. Microsoft is winning in its bets by focusing on OpenAI services and several other already available Microsoft services.

Attempting to catch up, Amazon invested $4 billion in chatbot maker Anthropic in September and launched its Bedrock AI service in October. According to Global X analyst Tejas Dessai, “Generative AI will re-ignite growth within the (AWS) franchise.” Major partnerships have secured this quarter. In future, it will help them to grow with better opportunities.

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Lucas Neill

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