Amazon set to report second-quarter earnings after the bell
Summary
Amazon Web Services has been a growth driver for years, but the pace of expansion is slowing as customers clamp down on spending due to an uncertain economic outlook. "The key question will be whether management suggests that with the timing of the optimization cycle, AI workloads, and easing comps that AWS is likely to start showing revenue growth acceleration beginning in Q3," analysts at Evercore, who have the equivalent of a buy rating on Amazon, wrote in a note this week. Last week, Amazon hosted an AWS Summit, where the company announced updates related to generative AI, including a service that uses the technology to transcribe and summarize doctors patient visits. The company said its made significant headway on its efforts to establish one- and same-day delivery as the standard for Prime members, while also bringing costs down. Meta showed better-than-expected results last week, but rival Snap fell short of sales expectations and gave a weak forecast for the current quarter.