Amazon’s stock saw a rollercoaster ride yesterday following the company’s first-quarter earnings report. Shares initially saw an uptick, rising after the company posted its biggest quarterly profit since 2021 (MarketWatch). However, the stock later dipped in extended trading, with the CFO admitting that AWS growth rates are declining further (MarketWatch). The cloud computing outlook overshadowed the report of first-quarter sales that beat analyst estimates. As a result, Amazon’s stock forfeited gains because of “optimizations” from AWS customers (Yahoo Finance).
Amazon is experiencing a slowdown in cloud computing growth, which is also affecting Dow Jones Futures (Investor’s Business Daily). However, some reasons to remain hopeful for the stock’s future include the fact that Amazon’s earnings report created significant volatility after hours, with some investors hoping for even more gains to come (The Motley Fool). Additionally, Amazon’s shares saw trading higher on Wednesday, in sympathy with Microsoft and Alphabet (Benzinga).
It’s unclear how the cloud computing slowdown will ultimately affect Amazon’s stock in the long term. However, for now, despite beating first-quarter earnings and revenue estimates, the company’s stock is dropping. In fact, Amazon’s shares initially rose sharply in late trading but then dropped after the company’s first-quarter earnings report, leaving investors unsure of where the future of this stock will go (Barron’s).
