Amazon's AWS Growth Expected To Outpace Microsoft Azure, Analyst Optimistic
Portfolio Pulse from Anusuya Lahiri
JMP Securities analyst Nicholas Jones is optimistic about Amazon's AWS growth, expecting it to outpace Microsoft's Azure. Jones rated Amazon shares with Market Perform and a price target of $225. Microsoft Azure's revenue missed expectations, while Google Cloud beat them. Jones projects Amazon's AWS to grow 18% y/y in Q2, with stable-to-accelerating growth trends through the year.
July 31, 2024 | 4:56 pm
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
JMP Securities analyst Nicholas Jones rated Amazon shares with Market Perform and a price target of $225, expecting AWS growth to outpace Microsoft's Azure. Jones projects Amazon's AWS to grow 18% y/y in Q2, with stable-to-accelerating growth trends through the year.
The analyst's optimistic outlook and higher price target for Amazon shares, driven by expected AWS growth, are likely to positively impact Amazon's stock price in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Google Cloud beat Street expectations by 1.5%, indicating strong performance in the cloud services sector.
The positive performance of Google Cloud, beating expectations, is likely to have a positive impact on Alphabet's stock price in the short term.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
Google Cloud beat Street expectations by 1.5%, indicating strong performance in the cloud services sector.
The positive performance of Google Cloud, beating expectations, is likely to have a positive impact on Alphabet's stock price in the short term.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 50
NEGATIVE IMPACT
Microsoft's Azure revenue missed consensus expectations by 1.5%, and the company guided lower-than-expected growth for Azure and other cloud services. Capacity constraints and softness in some European geographies were cited as key factors.
The miss in Azure revenue expectations and lower growth guidance are likely to negatively impact Microsoft's stock price in the short term.
CONFIDENCE 80
IMPORTANCE 80
RELEVANCE 100