AWS continues to show strength, but there are a few things to watch out for


AWS re: Inventory 2021

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Investors were pleased with Amazon’s latest report (NASDAQ:AMZN) as the company’s Amazon Web Services and several other segments showed healthy growth that was praised by industry analysts.

And as AWS continues to grow a healthy 33% clip year over year, some Wall Street analysts say there are a few things investors need to watch out for about the tech giant’s cloud platform.

Deepak Mathivanan, an analyst at Wolfe Research, who has an outperform rating on Amazon (AMZN), wrote that AWS margins fell 6% sequentially in the company’s second quarter, largely due to an increase in stock-based compensation and higher incidental expenses is due.

Mathivanan also pointed out that growth slowed from the first quarter’s 33% versus 37%.

Nicholas Jones, an analyst at JMP Securities who has given Amazon (AMZN) an outperform rating, said that AWS, which works with Microsoft’s (NASDAQ:MSFT) Azure, Google’s (NASDAQ: GOOD) (GOOGL) cloud platform and…


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