Amazon and Intel grew sales at double-digit rates last quarter and their stocks still crashed out last night.
Shortly after the closing bell Thursday, Amazon was down more than 4.8% and Intel was down 15%. As it happens, that’s the same treatment the market gave Alphabet and Caterpillar a day earlier.
Strong quarters are not enough in the era of heavy AI capital expenditures. Investors want proof all the spending pays off.
Amazon’s net sales rose 12% to $201.9 billion, and AWS sales jumped 39% to $45.98 billion, which marked the cloud unit’s fastest growth in nearly five years.
Plus, operating margin hit 13.9%, the highest in the company’s history.
Amazon, though, still expects some $220 billion in capital expenditures this year, which still might be too high for the market to stomach currently.
As for Intel, revenue climbed nearly 21% to $16.5 billion, and adjusted earnings came in at 52 cents a share.
Data center and AI sales soared nearly 78% to $7.3 billion, Intel’s strongest data…
https://www.openingbelldailynews.com/p/amazon-intel-earnings-stock-ai-spending-capex