Analyst: Amazon Cloud Business Competitiveness Declines

Glonghui, February 6th｜D.A. Davidson analyst Gil Luria stated that Amazon's leading position in cloud business is gradually slipping, and it is struggling in competition with Microsoft Azure and Google Cloud. Therefore, the stock rating has been downgraded to neutral, and the target price has been sharply reduced from $300 to $175. "Although AWS's growth rate slightly accelerated to 24%, Google Cloud's growth rate accelerated to 48%, and Azure still achieved 39% growth despite limited resource allocation." Luria pointed out that Amazon's failure to secure a strong position in cutting-edge artificial intelligence labs is dragging down its performance; meanwhile, Google's self-developed TPU chips outperform Amazon's Trainium, "which is also influencing customer preferences."