No. of Recommendations: 4
From Amazon's Q report after the close today, in which the stock initially leaped 12% but later ended down in after-hours trading:
'Customers continue to evaluate ways to optimise their cloud spending in response to these tough economic conditions,' he [CFO Olasky] said.
'And we're seeing these optimisations continue into the second quarter with April revenue growth rates about 500 basis points lower than what we saw in Q1.'The warning underscores the challenge that major cloud providers, including Amazon, are facing as increasingly cost-conscious customers and a softening economy combine to put pressure on what has been a significant growth market.
The April guidance confirmed fears that AWS cloud customers were reducing their spending, but Olsavsky and Amazon chief executive Andy Jassy both stressed that their long-term outlook for cloud revenue remains bullish.
Financial Times: Content 38ccf8f8 b7da 430e 9a64 a3a7d1aff291 