Shares of Amazon (NASDAQ: AMZN) were down 3.5% as of 11:16 a.m. ET on Wednesday following a disappointing earnings report from Google parent after the market close on Tuesday.

Investors have high hopes that the recent spending push for artificial intelligence (AI) technology can drive strong growth for the cloud computing leaders, including Amazon. While Alphabet's report disappointed, a strong report from Microsoft's cloud business suggests the opportunity is starting to ramp up.

Amazon's cloud services business (Amazon Web Services) has nearly doubled its annual revenue from 2020 through 2022. The business made up 16% of the company's total revenue in the second quarter. But growth has slowed this year as customers tighten spending in an uncertain macro environment. This dynamic is still affecting Google Cloud's growth.

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Source Fool.com