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Amazon's stock plummets 7% as AWS lags behind rivals
Amazon's stock dropped more than 7% after its cloud business, AWS, didn't meet expectations—especially compared to Microsoft Azure and Google Cloud, which posted much bigger growth.
Even though Amazon is predicting strong sales for the next quarter, investors are still uneasy about AWS keeping up with rivals.
AWS's profit margins slipped to 32.9%
AWS's profit margins slipped to 32.9% (down from nearly 40%), and while revenue rose by 17.5% to $30.9 billion, it couldn't match Azure's or Google Cloud's pace.
Amazon is pouring $118 billion into infrastructure and AI this year but hasn't landed a top AI model yet—so the pressure is on as competition and costs keep rising.