The company recently told its own story, putting AWS in the most bullish light. It left out a couple of important details.
The rhetoric regarding Amazon (AMZN +0.19%) since the company posted its third-quarter results a little over a week ago has been overwhelmingly bullish. Shares surged immediately following the release of those numbers, and have held their ground in the meantime. Most of the credit goes to artificial intelligence (AI)-driven demand for its cloud computing services.
However, Amazon Web Services (AWS) isn’t quite firing on all the cylinders that the market seems to think it is. Here’s a closer look at a couple of red flags.
Image source: Getty Images.
Not all is as the superficial talk suggests
Don’t misread the message. Amazon’s cloud arm is doing OK. Revenue grew 20% year over year last quarter, pushing operating income up from $17 billion a year ago to nearly $21.6 billion this time around. Both extended long-established trends.
AWS’ dominance of its market…
https://www.fool.com/investing/2025/11/11/amazon-cloud-business-aws-actually-thriving-stock/