Amazon’s cloudy business seems to have skipped a beat as the outfit fell short of what the cocaine nose jobs of Wall Street predicted.
The retail giant’s net sales increased 20 percent year on year to $63.4 billion for the three months ending 30 June 2019.
The revenue figure beat market expectations, but its growth figure fell short of what analysts had predicted.
Amazon Web Services (AWS), its cloud business, generated revenue of $8.3 billion in the quarter, up 37per cent on the same period last year, but falling slightly short of analyst expectations.
Its operating income contributed $2.1 billion to its parent company’s net income of $2.6 billion in the quarter. This 37 percent figure is the first time the cloud unit’s quarterly growth has fallen below 40 percent.
It is also below growth numbers being seen by Microsoft – which were 19 percent.
Arch rival Microsoft recently reported sales in its Intelligent Cloud division – which houses Azure – rise 19 percent to $11.4 billion .
AWS CFO Brian Olsavsky said: “AWS is continually being chosen as a partner to many companies because of our leadership position in technology, vibrant partner ecosystem, and also the stronger security that we offer.”
In its Q1 report, the CFO had said Amazon would be investing $800 million in its datacentre infrastructure in order to make one-day shipping available to its Prime members.
