Thursday proved to be a positive day for Wall Street as Amazon.com Inc. released its quarterly results, which included impressive sales figures for its Amazon Web Services (AWS). The market-leading AWS saw a 12% increase in sales, reaching $22.1 billion. This growth showcases the stabilization of AWS after a challenging period. Jefferies analyst Brent Thill stated that these sales figures are crucial as they highlight healthier days for the cloud market, particularly amidst the surge in demand for generative-AI services and concerns about Amazon's position in the industry.
While Microsoft Corp. expects a slowdown in revenue growth from Azure and other cloud services, Alphabet Inc.'s Google Cloud revenue grew by an impressive 28%, surpassing Wall Street estimates. Despite some analysts questioning how AWS will adapt to the age of AI, Amazon CEO Andy Jassy remains optimistic. Jassy acknowledged the stability of AWS growth and highlighted the company's implementation of generative AI releases, making it easier and more cost-effective for businesses to train and run models in the cloud.
Overall, Amazon's strong performance in AWS sales is a testament to its influential role in the cloud-computing industry and its ability to meet evolving market demands.
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