New cloud forecast

Amazon weakens, Google & Microsoft ahead in AI

Due to sluggish demand in the important cloud business, Amazon has delivered a surprisingly cautious outlook. The online retailer forecast revenue of between 144 and 149 billion dollars for the current quarter. Analysts had expected an average of a good 150 billion dollars.

Thanks to an increasing number of new products with artificial intelligence (AI), Microsoft and the Alphabet subsidiary Google have taken customers away from Amazon's cloud division in recent months.

However, Amazon Web Services (AWS) is still a good deal bigger, emphasized analyst Gil Luria from research firm D.A. Davidson. "We expect Amazon to catch up in terms of AI capabilities in the coming years.