Did Oracle Just Explain Why Amazon's Cloud Business, AWS, Has Lost Its Luster?
For many years, Amazon's (NASDAQ: AMZN) main breadwinner hasn't been e-commerce but rather its pioneering work in cloud computing, the Amazon Web Services (AWS) segment. But after more than a decade of rapid expansion, AWS has fallen on hard times -- or at least what can be considered "hard times" for the cloud market. Amazon's star player has been losing serious steam due to a slowing economy and customers tightening their financial belts.
But there could be more to the story. Software giant Oracle (NYSE: ORCL) saw some resurgence this past year, and co-founder and CTO Larry Ellison said Oracle is winning over AWS customers. Is Amazon in trouble?
Amazon reported Q1 2023 earnings back in April, so let's get a quick refresh on the AWS outlook. Revenue from the cloud giant was up 16% year over year to $21.4 billion, half the growth rate being reported in early 2022. Still, not too shabby for a company hauling in more than $85 billion in annualized sales.
Source Fool.com
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