Investors are eager to learn about the results of Amazon (AMZN) that will be published this Thursday after closing, after the failure in Alphabet cloud sales (Goog, Googl). The report will test if large technology companies will continue to invest strongly in AI, a vision that promoted the value of Nvidia (NVDA) actions on Wednesday, which benefited the actions in general.
The result is also known after a mixed presentation by its peers in Big Tech and a shake in the market due to the emergence of the Chinese startup of AI, Deepseek.
Amazon results occur after the rivals in the Microsoft cloud (MSFT) and Google (Goog, Googl) did not meet the expectations of cloud sales in the quarter. Microsoft reported revenues of US $ 40 billion, below the $ 41.1 billion, and Google reported sales of US $ 11.9 billion, below the US $ 12.1 billion. Both companies attributed the results to the lack of capacity to meet the demand for their cloud and IA services.
Microsoft and Google’s shares opened down the day after their reports, with a 6% drop in Microsoft’s shares and a 7% drop in Alphabet’s, Google matrix.
Amazon is the largest cloud supplier in the world and, like Microsoft and Google, is strongly investing in building its AI infrastructure to meet demand. In the third quarter, the CEO Andy Jassy informed the shareholders that the company planned US $ 1,50 with revenues of US $ 187.3 billion, compared to $ 1.00 and $ 169.9 billion of the same period last year.
What the market expects
Amazon Web Services revenues are expected to reach $ 28.8 billion, compared to US $24.2 billion of the previous year, while the company’s advertising revenues could reach AU $ S17.3 billion, compared to comparison The US $ 14.6 billion in the fourth quarter of 2023. Investors will also be attentive to the response of Amazon executives to Deepseek’s success with their R1 model of AI.
Just before the first wave of results of great technological ones, Depseek’s growing popularity caused panic on Wall Street, while investors wondered how a company with a modest budget and without late -generation chips could develop a model of AI capable of compete with those of the most capitalized technological companies in the United States.
Amazon, like Microsoft, has already made available to Depseek’s model through its AI services platform, allowing users to access and use the AI software at will. Amazon executives have affirmed that their AI business has already generated billions of dollars for their cloud unit, and expect AWS to generate more than US $ 105 billion in the year. Capital expenses for AWS are expected to exceed US $ 14.5 billion for the quarter, according to Bloomberg data.
Analysts expect Amazon advertising operations to be a brilliant point. Although it is still in the early stages of monetizing the advertising spaces of Prime Video, advertising income is expected to increase almost 20%, according to Bloomberg data.
Source: Ambito
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