Amazon (AMZN) reported its first-quarter sales on Thursday, beating analysts’ estimates, which initially caused a rally in extended trading. However, later on, Amazon stock gave up gains as CFO Brian Olavsky admitted that AWS (Amazon Web Services) growth rates had further declined (MarketWatch). Even though the company posted its biggest quarterly profit since 2021, investors are now concerned about the uncertainty that shrouds Amazon’s cloud computing future (CNBC).
In the face of this cloud uncertainty, the stock may be struggling to maintain its momentum. Investors received further evidence of this when Amazon warned on “optimizations” from its AWS customers, causing the shares to surge initially before losing its gains in the extended trading session (Yahoo Finance). The decline in AWS growth also added to the stock’s downward trend (Investor’s Business Daily).
Despite these concerns, some believe that three smart reasons exist to buy Amazon stock now, while others believe the stock is finally showing some signs of life after a brutal 2022 (The Motley Fool). In addition, Amazon’s earnings also created massive volatility after-hours (The Motley Fool).
Widespread volatility in tech stocks may have prompted some investors to cash out since Amazon shares have fallen and have not recovered as of late. However, the company’s earnings and revenue continue to beat analysts’ estimates, making the stock an attractive investment option (Barron’s).
In conclusion, Amazon’s stock is currently facing uncertainty caused by the decline in AWS growth rates but remains an attractive investment option due to its stellar first-quarter earnings and revenue performance.
