Amazon’s cloud business accelerates but shares drop on profit miss

Amazon's AWS remains the top provider of cloud computing services globally. In its latest earnings report, Amazon's profit and revenue missed expectations, causing its shares to drop more than seven percent in after-hours trading. However, the company's AWS cloud business showed strong growth. Google's shares also fell significantly after reporting lower-than-expected profits due to a slowdown in advertising and increased spending on AI.

Intel's shares plummeted 20% after stating a protracted slowdown for personal computers. Despite the profit miss, Amazon expects to spend $220 billion on capital expenditures this year, primarily on AI investments. The company reported total revenue of $201.9 billion and profit of $20.7 billion in the third quarter, below analyst expectations of $202.2 billion and $21.5 billion, respectively.

Amazon's CEO, Andy Jassy, highlighted potential lucrative business segments beyond e-commerce, including grocery, healthcare, and autonomous vehicles. Jassy stated that Amazon aims to become a trillion-dollar revenue business within the next 5-10 years. The company is well-positioned to benefit from the AI race due to its early lead in cloud computing services through AWS.