Amazon joins Google, Microsoft in cloud weakness, shares slide 3%
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Amazon.com shares fell 3.72% to $229.95 on Friday after the tech giant reported lackluster cloud revenue growth, amplifying investor concerns that Big Tech's massive artificial intelligence investments were taking longer to deliver returns. Alphabet's shares were down 2.87% at $187.77 while Microsoft was trading 1.02% lower at $411.56. The results echoed the slowdown at Microsoft and Alphabet-owned Google, and highlighted how U.S. cloud-computing giants were struggling to scale AI as infrastructure bottlenecks cap growth, forcing them to invest billions in data centers with little short-term payoff. Scrutiny over AI spending has also increased since China's DeepSeek unveiled a low-cost AI model last month, raising questions over Big Tech's capital-intensive approach. Amazon Web Services, the company's cloud unit, posted a 19% rise in revenue to $28.79 billion, just shy of the $28.87 billion analysts were expecting, ac...