Amazon Shares Drop as Cloud Growth Misses Expectations

Amazon’s stock fell by 4% on Friday after the company’s quarterly cloud computing revenue growth fell short of investor expectations. The disappointing results reflected a slowdown in growth at Amazon Web Services (AWS), which posted a 19% increase in revenue to $28.79 billion. This figure was slightly below the anticipated $28.87 billion. The performance echoed similar disappointments from other major tech giants, including Microsoft and Alphabet, who also saw cloud revenue growth fail to meet expectations.

The missed expectations came as cloud companies, particularly those heavily investing in AI, are under greater scrutiny. AWS’s growth rate matched that of the previous quarter, raising concerns among analysts about potential capacity constraints or other unidentified issues.

The disappointing results led to a $100 billion drop in Amazon’s market value. However, Amazon’s stock has still risen about 4% in 2025, outpacing losses seen by Microsoft and Alphabet, whose stocks have fallen by 3%. Despite this drop, Amazon’s shares continue to be favored by analysts, with 68 recommending buying the stock and no analysts advising to sell.