American Stock Fluctuations | Q2 Cloud Business Growth Disappoints and Indicates Soft Guidance - Amazon (AMZN.US) Plunges Over 7%

According to intelligence, on Friday, Amazon (AMZN.US) opened down over 7%, with a market value of $1780 billion, closing at $217.66. On the surface, the company's Q3 operating profit guidance was below expectations, and cloud business growth lagged behind its competitors, causing investors to seek clues as to whether the massive investments in artificial intelligence have borne fruit. Data shows that Amazon's total revenue grew 13% in Q2 to $1677 billion, surpassing market average expectations of $1621 billion. Earnings per share were $1.68, exceeding market average expectations of $1.33. Notably, Amazon Web Services (AWS), the company's largest cloud computing service provider, recorded revenue growth slightly above 17%, reaching $309 billion, only slightly higher than analysts' average expectation of $308 billion.

Looking ahead, Amazon stated in its declaration that Q3 operating profit is expected to be between $155 billion and $205 billion as of September, while analysts expect an average of $194 billion; sales are expected to reach $1740 billion to $1795 billion, exceeding analysts' average expectation of $1732 billion.

DA Davidson analyst Gilly Luria noted that given the higher growth rates announced by Microsoft and Google, Amazon's AWS revenue growth is "very disappointing". In the three months up to June, Microsoft Azure recorded a 39% increase in revenue, while Google Cloud saw a 32% increase.