Amazon's cloud system AWS reports weaker-than-expected revenue growth

Investors worried over first-quarter sales outlook

Amazon's retail service offsets cloud weakness with 7% online sales growth

By Greg Bensinger, Deborah Mary Sophia

Feb 6 (Reuters) - Amazon.com financiers drove shares down greatly on Thursday due to weak point in the computing system and lower-than-expected forecasts for first-quarter income and profit.

Amazon's shares fell as much as 5% in extended trade after the fourth-quarter earnings report, erasing about $90 billion worth of stock market worth, and were last down about 4.2%.

Amazon Chief Financial Officer Brian Olsavsky said he anticipated the capital expenditure run rate for this year to be roughly the like last year's 4th quarter when the company invested $26.3 billion. Amazon has enhanced spending in particular to help establish expert system software application.

The company's sales quote for wiki.vst.hs-furtwangen.de the first quarter failed to meet analysts ´ expectations, even if an unfavorable effect of $2 billion from in 2015 ´ s Leap Day is included. The company said it anticipates between $151 billion and $155 billion, compared to the average price quote of $158 billion. The cloud unit, Amazon Web Services, oke.zone reported a 19% increase in income to $28.79 billion, disappointing estimates of $28.87 billion, according to information assembled by LSEG. Amazon signs up with smaller sized cloud suppliers Microsoft and Google in reporting weak cloud numbers.

President Andy Jassy said the inconsistent flow of computer system chips had kept back some growth in AWS. "We might be growing much faster, if not for a few of the constraints on capability, and they are available in the kind of chips from our third-party partners coming a bit slower than in the past," he informed investors on a conference call.

The cloud weak point occurs as investors have grown increasingly impatient with Big Tech's multibillion-dollar capital costs and are hungry for returns from hefty investments in AI.

"After extremely strong third-quarter numbers, this quarter the growth rates all missed. That's what the market doesn't wish to hear," said Daniel Morgan, senior wiki.eqoarevival.com portfolio supervisor at Synovus Trust. He said this is especially real after the introduction of new competitors in synthetic intelligence such as China's DeepSeek. Like its rivals, Amazon is investing heavily in expert system software application advancement. At its annual AWS conference in December it displayed brand-new AI software application models that it hopes will draw brand-new business and customer customers. Later this month, it is set to release its long-awaited Alexa generative synthetic intelligence voice service after hold-ups over concerns about the quality and speed, Reuters reported previously today.

Competitors Microsoft and Google parent Alphabet both posted slowing cloud development in in 2015 ´ s 4th quarter, ura.cc sending shares lower. The business, library.kemu.ac.ke together with Meta Platforms, said expenses to develop facilities for expert system software application added to sharply higher awaited capital investment for it-viking.ch 2025, an overall of around $230 billion in between them.

Amazon's retail service assisted offset the cloud weakness, freechat.mytakeonit.org with the company reporting online sales development of 7% in the quarter to $75.56 billion. That compared with quotes of $74.55 billion.

Amazon projection operating profit of $14 billion to $18 billion for the very first quarter of 2025, missing an average expert estimate of $18.35 billion.

The company reported profits of $187.8 billion in the 4th quarter, compared with the average analyst quote of $187.30 billion, according to data compiled by LSEG.

Advertising sales, a closely watched metric, increased 18% to $17.3 billion. That compares to the average estimate of $17.4 billion.

Earnings almost doubled to $20 billion from $10.6 billion a year earlier. The Seattle retailer reported profits of $1.86 per share, compared with expectations of $1.49 per share.

(Reporting by Deborah Sophia in Bengaluru and Greg Bensinger in San Francisco; Additional reporting by Noel Randewich in Oakland, California; Editing by Shounak Dasgupta and Matthew Lewis)