(Reuters) – Amazon.com Inc said on Thursday it expects its revenue for the current quarter to fall far short of Wall Street estimates.
The group reported tepid demand for its cloud computing services as companies keep tight control over costs in an uncertain economic climate.
The stock was down more than 6% in after-hours trading.
Persistent inflation and high borrowing costs are causing companies to reconsider major investments in artificial intelligence (AI), making it difficult for cloud providers to meet Wall Street’s lofty expectations.
“We continue to make progress on a number of fronts, but perhaps nowhere more so than in resuming the AWS Growth acceleration,” Amazon CEO Andy Jassy said in a statement.
Revenue at cloud subsidiary Amazon Web Services (AWS) rose 19 percent to $26.3 billion (€24.1 billion) in the second quarter, beating market estimates of $25.95 billion.
The group expects third-quarter revenue of between $154.0 billion and $158.5 billion, compared with analysts’ average estimate of $158.24 billion, according to LSEG data.
(Deborah Sophia; Camille Raynaud)
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