Amazon's cloud unit AWS reports weaker-than-expected revenue growth

Investors worried over first-quarter sales outlook

Amazon's retail company cloud weak point with 7% online sales growth

By Greg Bensinger, Deborah Mary Sophia

Feb 6 (Reuters) - Amazon.com investors drove shares down dramatically on Thursday due to weakness in the retailer's cloud computing unit and lower-than-expected forecasts for first-quarter income and profit.

Amazon's shares fell as much as 5% in prolonged trade after the fourth-quarter profits report, removing about $90 billion worth of stock market worth, and were last down about 4.2%.

Amazon Chief Financial Officer Brian Olsavsky said he expected the capital expenditure run rate for this year to be approximately the like in 2015's 4th quarter when the business spent $26.3 billion. Amazon has enhanced costs in specific to assist establish expert system software application.

The company's sales price quote for the very first quarter failed to meet experts ´ expectations, even if an unfavorable impact of $2 billion from last year ´ s Leap Day is consisted of. The company said it prepares for wiki.whenparked.com in between $151 billion and $155 billion, compared to the average quote of $158 billion. The cloud unit, Amazon Web Services, reported a 19% increase in income to $28.79 billion, falling short of price quotes of $28.87 billion, according to data put together by LSEG. Amazon joins smaller sized cloud service providers Microsoft and Google in reporting weak cloud numbers.

President Andy Jassy said the inconsistent flow of computer system chips had actually kept back some development in AWS. "We could be growing faster, if not for some of the constraints on capability, and they are available in the form of chips from our third-party partners coming a little bit slower than before," he informed financiers on a teleconference.

The cloud weak point takes place as investors have grown progressively impatient with Big Tech's multibillion-dollar capital spending and engel-und-waisen.de are starving for returns from hefty investments in AI.

"After extremely strong third-quarter numbers, this quarter the development rates all missed. That's what the marketplace does not wish to hear," said Daniel Morgan, senior portfolio manager at Synovus Trust. He said this is particularly real after the emergence of brand-new rivals in synthetic intelligence such as China's DeepSeek. Like its competitors, Amazon is investing greatly in expert system software application advancement. At its yearly AWS conference in December it showed off brand-new AI software application models that it hopes will draw new service and customer customers. Later this month, it is set to launch its long-awaited Alexa generative expert system voice service after hold-ups over issues about the quality and speed, tandme.co.uk Reuters reported previously this week.

Competitors Microsoft and Google parent Alphabet both posted slowing cloud development in in 2015 ´ s fourth quarter, sending shares lower. The companies, along with Meta Platforms, archmageriseswiki.com said costs to establish facilities for expert system software added to dramatically higher awaited capital investment for [forum.batman.gainedge.org](https://forum.batman.gainedge.org/index.php?action=profile