Amazon Web Services grew 39% to $45.98 billion. Wall Street expected $45.29 billion. Beat by 69 cents per thousand dollars. Pop the champagne.
Meta signed a deal. OpenAI signed a deal. Two companies that could build their own data centers, if they ever stop signing deals with each other.
Microsoft and Alphabet accelerated too. Everyone is winning. That is how you know the game is rigged, or at least extremely crowded.
Andy Jassy says AWS could hit a trillion dollars a year in revenue within five to 10 years. A man guessing a five-year window and a ten-year window is not forecasting. He is ordering off a menu.
Amazon spent $77.3 billion on capital expenditures in one quarter. Trailing free cash flow is an outflow of $42.4 billion. The cloud business is thriving the way a restaurant thrives when it hands out free steaks.
Shares reportedly fell more than 7% after hours. Revenue beat. Profit up 55%. Stock down. Some of you bought calls on this.
Retail traders read "39% growth" and saw a green candle. The market read "$220 billion capex forecast" and saw a hole. The market has better eyesight than you and worse manners.
Amazon also bought DuckLabs, the company behind DuckDB. Somewhere a founder is holding a check and a database named after a duck. That man is doing better than your portfolio.
AWS is now almost 23% of Amazon's revenue. The rest of Amazon sells you batteries and a trial of something you forgot to cancel.
Your options expire Friday. The cloud will be fine.
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