Amazon.com said growth in its cloud business is stabilizing as it signed new deals, but warned that consumers remained wary about spending going into the holiday quarter.
The company, which just released impressive third-quarter earnings supported by a recent marketing campaign and faster delivery, anticipated a gain in revenue over the crucial holiday season but might yet fall short of Wall Street estimates.
Amazon is attempting to maintain its position as the largest online retailer and cloud provider in the world despite a number of obstacles to its operation.
In an effort to strengthen its cloud offering, the business has responded to competitors Google and Microsoft by announcing plans to invest up to US $ 4 billion in chatbot manufacturer Anthropic and promoting an AI service that has thousands of customers.
Amazon has also rearranged its delivery network to place products nearer to customers, enabling it to complete purchases more quickly and affordably than in the past.
Amazon has encountered several difficulties concurrently, including limited household budgets, companies closely examining their cloud expenditures, and a lawsuit filed in September by the US Federal Trade Commission alleging pricing manipulation and monopolistic practises. The claims are being contested by the company.
In light of this, the business projected revenue for the crucial holiday quarter ending on 31st December to be between US $ 160 billion and US $ 167 billion. LSEG polled analysts, who predicted revenues at the top end of Amazon’s projection, at US $ 166.62 billion.
