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Amazon projects quarterly revenue below estimates

Published 2024-08-01, 04:30 p/m
© Reuters. FILE PHOTO: The logo of Amazon is seen at the company logistics center in Lauwin-Planque, northern France, January 5, 2023. REUTERS/Pascal Rossignol/File Photo
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(Reuters) -Amazon.com forecast current-quarter revenue largely below Wall Street estimates on Thursday, signaling tepid demand for its cloud computing services as businesses keep a tight lid on costs against an uncertain economic backdrop.

Shares of the Seattle-based company fell more than 6% in extended trading.

Sticky inflation and high borrowing costs are prompting companies to reconsider any lavish investments into artificial intelligence technology, holding back cloud providers from matching Wall Street's lofty expectations.

© Reuters. FILE PHOTO: The logo of Amazon is seen at the company logistics center in Lauwin-Planque, northern France, January 5, 2023. REUTERS/Pascal Rossignol/File Photo

Amazon (NASDAQ:AMZN)'s cloud business, Amazon Web Services (AWS), reported a 19% increase in revenue to $26.3 billion for the second quarter, surpassing market estimates of $25.95 billion.

The company expects revenue of $154.0 billion to $158.5 billion for the third quarter, compared with analysts' average estimate of $158.24 billion, according to LSEG data.

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