AWS Slowdown Won't Slow Down Amazon Shares
Slowing growth in Amazon.com's (NASDAQ: AMZN) cloud computing business didn't stop Amazon shares from soaring after the company's earnings report and pushing market value to the $1 trillion mark. Though net sales growth at Amazon Web Services (AWS) slowed to 34% in the fourth quarter from 35% growth in the third quarter and 37% in the second, investors wisely put this into perspective and chose not to sanction the stock.
Image source: Getty Images.
Why are investors right to shrug off the news? First of all, the size of the slowdown isn't alarming, and AWS net revenue of $9.95 billion still came in ahead of a Factset forecast for $9.81 billion. And at the same time, AWS is aggressively expanding what it has to offer. That means higher costs now but more revenue later. Among various new features, AWS announced machine learning-powered analytics capabilities that help businesses spot and understand customer issues and trends. AWS also launched initiatives to advance quantum computing technologies with a service that allows professionals to experiment with computers from quantum hardware providers in one place. And five new artificial-intelligence services are meant to put machine learning in the hands of more developers.
Source Fool.com
