Analyst: Amazon's massive capital expenditures overshadow strong AWS growth

Glonghui, February 6th｜Benchmark analyst Daniel Kurnos wrote in a report that Amazon's commitment to invest $200 billion in capital expenditures by 2026 triggered a decline in its stock price, overshadowing the 24% year-over-year growth in its cloud business. He pointed out that AWS revenue reached $35.6 billion, $700 million higher than Wall Street's consensus estimate, while the profit margin for this business segment remained robust at 35%. Kurnos wrote: "If one must be picky, from a technical perspective, advertising revenue was basically in line with market expectations. Given the trends of the past few quarters and the progress of Prime Video and Amazon DSP, investors may have originally expected greater upside potential."