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Amazon said revenue in its cloud unit increased 19% in third quarter, just missing analyst estimates. AWS leads the cloud infrastructure market over Google and Microsoft and is an important source of profit for Amazon. On Tuesday Alphabet said revenue from Google Cloud, which includes cloud applications as well as infrastructure, totaled $11.35 billion, up 35%. Microsoft said Wednesday that revenue from Azure and other cloud services grew 33%. Google Cloud reported an operating margin of 17%.
Persons: Matt Garman, Oracle, Garman, Databricks, Naveen Rao Organizations: Amazon Web Services, Tech, Amazon, Revenue, Google, Microsoft, AWS, CNBC, TechCrunch Locations: Laguna Beach , California
Amazon's AI services are rapidly growing, with significant demand for AWS's AI chips. AdvertisementJust when you thought Big Tech executives couldn't get more bullish on AI, Amazon CEO Andy Jassy upped the ante on Thursday. Amazon has launched a number of new AI services in recent years, including Bedrock, an AI development tool, the Rufus shopping agent, and homegrown AI chips called Inferentia and Trainium. Amazon's AI business is "growing three times faster at its stage of evolution than AWS did itself," he added. AdvertisementCustomers are realizing that AI model training and inference "could get costly" and AWS's AI chips can be "very compelling" in terms of its price, the CEO explained.
Persons: Jassy, , couldn't, Andy Jassy, We've, unravels ChatGPT, Rufus Organizations: Service, Big Tech, Amazon, Services Locations: capex
"I think we've proven over time that we can drive enough operating income and free cash flow to make this a very successful return on invested capital business," Jassy said. "We expect the same thing will happen here with generative AI." The jump in spending is primarily being driven by generative AI investments, Jassy said. A day earlier, Alphabet CFO Anat Ashkenazi warned the company expects capital spending to grow in 2025. Amazon has said its cloud unit has picked up more business from companies that need infrastructure to deploy generative AI models.
Persons: Andy Jassy, Jassy, OpenAI, we're, Mark Zuckerberg, Anat Ashkenazi, It's, it's Organizations: Amazon Web Services, Meta, Microsoft, Amazon Locations: OpenAI
CFRA trimmed its Amazon price target to $219 a share on October 21, indicating 13% upside ahead. The firm has a "buy" rating on the stock and a $210 price target, which implies an 8.3% gain from current levels. The firm said investors have toned down margin expectations due to Amazon's spending in new investment areas, such as Project Kuiper. AdvertisementWedbush reiterated its "outperform" rating and $225 price target, implying a 16% gain from current levels. Morgan Stanley has a $210 price target for the stock, representing upside of about 8% from Wednesday's share price.
Persons: , Arun Sundaram, Sundaram, Justin Post, BofA, Scott Devitt, Wedbush, Morgan Stanley, Bullish, Brian Nowak Organizations: Service, CFRA, Bank of America, Amazon Web Services, 3Q, JPMorgan, Wedbush Securities
The big storyPresidential betsChris duMond; Chip Somodevilla/Getty Images; Jenny Chang-Rodriguez/BIWe're less than a week from election day, but one group can already claim victory: betting markets. Kalshi's legal victory in October over the CFTC to offer election betting paved the way for the trend. iStock; Rebecca Zisser/BIThe betting market's biggest tests might come after the election. Betting markets have Trump as a heavy favorite, whereas traditional polls indicate a tight race. AdvertisementShould Trump win in a landslide, it could strengthen the case for using betting markets as a key tool for election analysis.
Persons: , Chris duMond, Chip Somodevilla, Jenny Chang, Rodriguez, Matthew Fox, Donald Trump, Polymarket, iStock, Rebecca Zisser, Nate Silver, Tesla, Zuckerberg, Citadel's, Justin Lubell, Lubell, Steve Schwarzman, Ken Griffin, Trump, Tyler Le, Harris, Sundar Pichai, Elon Musk, Dan DeFrancesco, Jordan Parker Erb, Hallam Bullock, Milan Sehmbi Organizations: Business, Service, Apple, CFTC, Trump, TikTok, Meta Connect, Meta, Bank of America, Blackstone, Republican, Amazon, AWS, Five Apple Intelligence, Google, The Washington Post, Street, Microsoft, Starbucks Locations: French, New York, London
AWS CEO Matt Garman has been sent a letter from employees protesting his pro-RTO comments. Over 500 employees have signed a letter, sent on Wednesday, urging Garman to reconsider the plans. AdvertisementAmazon Web Services CEO Matt Garman is facing backlash from some employees over his comments about its return-to-office policy, according to an open letter obtained by Business Insider. The policy is stricter than at Amazon's peer companies and, by some accounts, stricter than Amazon's office work policy before the pandemic. The letter has been signed by 523 staff from Amazon and AWS, with 172 of those including their names.
Persons: Matt Garman, Garman, , Matt doesn't, Elizabeth Rutledge, Garman's, Andy Jassy, Margaret Callahan, we're, Amazon's, Jyoti Mann, Ashley Stewart Organizations: Service, Web, Business, AWS, BI, American Express, Amazon Locations: jyotimann
Announced in August , and reported this way for the first time this week, Microsoft decided to change which revenue streams fall under its three main reporting segments. In Microsoft's upcoming report, search and news advertising revenue will move from the More Personal Computing (PCP) segment into the Intelligent Cloud (IC) segment. Another change includes Microsoft removing revenue from Power Business Intelligence data analytics and the Enterprise Mobility and Security group of products from the IC segment. MSFT YTD mountain Microsoft (MSFT) year-to-date performance Some Wall Street analysts are upbeat on the new reporting structure. He also touted Microsoft's AI prospects ahead of quarterly earnings — citing the company's first-mover advantage in integrating AI.
Persons: Piper Sandler's Brent Bracelin, Bracelin, Morgan Stanley, there's, Jim Cramer, I'm, Jim, Amy Hood's, Jim Cramer's, Satya Nadella, Dimas Ardian Organizations: Microsoft, Web Services, Power Business Intelligence, Enterprise Mobility, Security, Piper, CNBC, BI, Guggenheim, Big Tech, Bloomberg, Getty Locations: OpenAI, Jakarta, Indonesia
AWS's Graviton CPU chips are used by over 90% of its 1,000 largest data center customers. AWS's custom silicon strategy includes AI chips like Inferentia and Trainium. AdvertisementIn 2018, Amazon Web Services launched Graviton, its own line of homegrown central processing unit chips for data center servers. Big enterprises, such as Epic Games, Databricks, and Pinterest, are all major Graviton customers, he said. "We will absolutely continue to drive innovation in custom silicon as we have been doing for the past 10-plus years."
Persons: , Rahul Kulkarni, Kulkarni, Graviton, James Hamilton, Bernstein, AWS's Kulkarni, Jassy Organizations: Service, Amazon Web Services, Intel, AMD, Epic, Annapurna Labs, Bernstein Research, AWS Locations: Israel
Microsoft leads Google in cloud market share, while Amazon Web Services is at the top. AdvertisementMicrosoft publicly accused Google of running "shadow campaigns" to undermine its business and influence cloud regulation in Europe, in an escalation of the tech giants' rivalry. A Google spokesperson told Business Insider the company had been "very public" about concerns with Microsoft's cloud licensing. In the second quarter, Google Cloud generated $10.35 billion in revenue, while Microsoft's Azure, included as part of the company's Intelligent Cloud group, reported $28.5 billion in revenue. AdvertisementIn 2023, Google Cloud generated $33.7 billion in sales, while Microsoft's Intelligent Cloud group reported $96.8 billion in sales.
Persons: , Rima Alaily, Alaily, Nicky Stewart, Stewart Organizations: Microsoft, Google, Amazon, Service, Cloud Coalition, Open Cloud Coalition, European Commission, Big Tech, Amazon Web Services, Department of Justice, Games Locations: Europe
For now, analysts and investors are looking to Amazon's third-quarter earnings report Thursday night for more clarity. Amazon hopes that Kuiper could bring broadband connectivity to some 400 million to 500 million households that currently lack it. Bank of America, on the other hand, estimates around $3.5 billion in Kuiper spending next year. The Kuiper spending estimates might seem steep, but the analysts aren't telling investors to dump shares. The "ultra-compact" version of the Project Kuiper Amazon
Persons: Jeff Marks, Andy Jassy, Kuiper's, Marks, Kuiper, Evercore, BofA, Morgan Stanley, Morgan Stanley's, Starlink, Elon Musk's, EBITDA, Jim Cramer's, Jim Cramer, Jim Organizations: Amazon, Web Services, AWS, Wedbush Securities, Federal Communications Commission, FCC, Bank of America, FactSet, SpaceX, Viasat, CNBC Locations: Amazon's
What's more, the enormous Amazon Web Services cloud services business effectively allows Amazon the leeway to figure out the best path forward in terms of applying AI to the rest of its businesses. At the same time, Amazon's Prime Video platform presents a formidable opponent against Netflix . Wang also said Amazon's Prime membership rolls could benefit from the upcoming holiday shopping season. So Amazon has a little bit of time to get their AI story right," he said. Wang added that investors can expect more insight into Amazon's investments during its December re:Invent conference.
Persons: Ray Wang's, Wang, Amazon's Organizations: Constellation Research, Amazon, Netflix, Microsoft, Google
Microsoft took the unusual step on Monday of publicly criticizing longtime rival Google for running "shadow campaigns" in Europe designed to discredit the software giant with regulators. "This week an astroturf group organized by Google is launching," Microsoft lawyer Rima Alaily wrote. "We've been very public about our concerns with Microsoft's cloud licensing, a Google cloud spokesperson said in an email. Google funded the Coalition for Fair Software Licensing that last year asked the U.S. Federal Trade Commission to investigate Microsoft, Alaily wrote. WATCH: Google Cloud exec says Microsoft is in violation of EU antitrust laws
Persons: Rima Alaily, Alaily, Microsoft's, didn't Organizations: Microsoft, Google, Justice Department, Group, Open Cloud Coalition, DGA, European Commission, Amazon Web Services, Amazon, Coalition for, Software, U.S . Federal Trade Commission, Cloud Infrastructure Services Locations: Europe, U.S, Monday's
The billionaire has been less prominent in the election than Elon Musk — but still has much at stake. Bezos's Blue Origin is working with NASA and the Pentagon as it plays catch-up with Musk's SpaceX. Executives from Bezos' rocket company Blue Origin, including CEO Dave Limp, spoke with Donald Trump on Friday, The Associated Press reported. Like all private space companies, Blue Origin relies heavily on federal contracts and is competing with SpaceX for government and military projects. Blue Origin did not respond to a request for comment from Business Insider.
Persons: Jeff Bezos's, Elon Musk, , Jeff Bezos, Dave Limp, Donald Trump, Kamala Harris, William Lewis, Bezos, Lewis, Robert Kagan, Michele Norris, Marty Baron, Baron, Elon, Artemis, it's, SpaceX's, Trump Organizations: Washington Post, NASA, Pentagon, Musk's SpaceX, Service, Bezos, Associated Press, New York Times, Trump, SpaceX, Republican, PAC, Business, Bloomberg, White, Twitter, United States Post, United States Postal Service, Web Services, of Defense, Microsoft Locations: Washington, The Texas, Amazon
For all we know, the yield curve may simply be going through the birthing of an un-inverted yield curve. GOOGL YTD mountain Alphabet YTD Search used to be so simple. META YTD mountain Meta Platforms YTD Meta Platforms has run big ahead of the quarter. AMZN YTD mountain Amazon YTD Let's get to the two toughest of the week, Amazon and Apple. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio.
Persons: let's, Eli Lilly, nonfarm payrolls, Carl Quintanilla, batty, Jeff Marks, Waymo, Elon Musk, Donald Trump, Kamala Harris, Department's, Mark Zuckerberg, Jensen Huang, Marc Benioff, Trump, Warren Buffett, Jim Cramer's, Jim Cramer, Jim Organizations: CNBC, Microsoft, Apple, Treasury, Federal Reserve, charlatans, Honeywell, Twitter, Club, Gemini, YouTube, Google, Donner Party of cannibalization, AMD, Nvidia, Intel, Merck, Pfizer, Tech Titans, Meta, Amazon Web Services Locations: Wall, cyclicals, California, Philly
Monday Ford Motor is set to report earnings after the bell, followed by a conference call at 5 p.m. What history shows: Bespoke Investment Group data shows Ford beats earnings expectations 68% of the time. What to watch: Meta is in a good spot heading into this week's report, according to Bernstein's Mark Shmulik. Microsoft is set to report earnings after the close, with a conference call on deck for 5:30 p.m. Amazon is set to report earnings after the market close, with a conference call at 5 p.m.
Persons: Edison Yu, Yu, BioNTech, Goldman Sachs, Toshiya Hari, Hari, LSEG, Bernstein's Mark Shmulik, Morgan Stanley's Keith Weiss, AAPL, KeyBanc, Justin Post Organizations: Apple, Ford Motor . Pharmaceutical, Pfizer, Corporate America, Monday Ford, LSEG, Ford, AMD, Cloud Service, Google, Microsoft, Windows, CNBC, Management, Amazon Web Services, Bank of America, Amazon Locations: Temu, .
The Street is looking for Stanley Black & Decker sales of $3.8 billion in the third quarter and earnings per share (EPS) of $1.05. The Street is looking for Linde sales of $8.35 billion in the third quarter and EPS of $3.89. In addition to the headline results and forward guidance, overall organic sales growth and data center energy power demand will be focus items for investors. The Street is looking for sales of $94.47 billion in its fiscal fourth quarter and EPS of $1.55. The Street is looking for Coterra sales of $1.3 billion in the third quarter and EPS of 34 cents.
Persons: That's, It's, Stanley Black, Decker, we're, We're, Eli Lilly, Lilly, Amy Hood's, Brian Niccol, Wednesday's, Linde, it's, we'll, Phillips, Horton, Kraft Heinz, SIRI, Estee Lauder, BUD, Cardinal Health, Jim Cramer's, Jim Cramer, Jim, Stephanie Keith Organizations: Nasdaq, Dow, Fed, PCE, YouTube, Justice, AMD, GE Healthcare, Reality Labs, Microsoft, Management, Starbucks, U.S, Presidential, Linde, Apple Intelligence, Amazon, Services, Coterra Energy, WM, Cadence Design Systems, Labor, PayPal, BP, Pfizer, Royal Caribbean Cruises, JetBlue, HSBC, Devices, Grill, Electronic Arts, EA, Gross, Caterpillar, Brinker International, AFortive Corporation, Illinois Tool, Coinbase, eBay, EBAY, Booking Holdings, MGM Resorts, MGM, Bausch Health, LIN, Merck, ConocoPhillips, Mastercard, Altria, Cruise, Myers Squibb, Comcast, Mobileye, Cheniere Energy, Regeneron Pharmaceuticals, Anheuser, Busch InBev, Intel, United States Steel, Juniper Networks, Chevron, Exxon Mobil, Dominion Energy, Charter Communications, LyondellBasell Industries, Cardinal, Jim Cramer's Charitable, CNBC, New York Stock Exchange, Getty Locations: Eaton, Corning, Illinois, Bristol, New York City
Amazon promoted Garman to be the CEO of Amazon Web Services this year, right as competition in cloud computing and AI intensified. Garman has nearly 20 years of experience across engineering and sales roles at the company. His deep understanding of the business helped shape AWS's early approach to generative AI and the creation of AI products, like Amazon Q and Bedrock. He also led the establishment of the AWS Generative AI innovation Center, designed to collaborate with customers and help them identify opportunities in AI. See Business Insider's full AI Power List
Persons: Garman Organizations: Amazon, Amazon Web Services
The company's energy strategy team recently pitched CEO Andy Jassy on the benefits of nuclear power. AdvertisementIn June, Amazon's Global Energy Strategy team pitched CEO Andy Jassy the idea of doubling down on nuclear power to support its growing network of data centers. Jassy agreed, according to an internal Amazon document from the third quarter that was obtained by Business Insider. The company considered tapping into at least four additional existing nuclear power plants and sought even more small modular reactor deals. Nuclear power can be safer, more reliable, and more cost-efficient in the long term compared to other power sources, according to Jacopo Buongiorno, a nuclear engineering professor at MIT.
Persons: Andy Jassy, , Thos Robinson, It's, Sam Altman, Jassy, Jacopo Buongiorno, Buongiorno Organizations: Service, Amazon's Global Energy, Business, Amazon, Amazon Web Services, Hulton, Google, Kairos, Microsoft, Amazon's Global Energy Strategy, BI, US Department of Energy, MIT, Global Energy Strategy Locations: Pennsylvania, Fukushima, Maryland, Texas
Electricity and labor headwinds slow Amazon's data center buildout. AdvertisementAmazon is spending heavily on data centers to support booming AI workloads, putting it on pace to build 240 new facilities by 2040, one estimate found. David Cahn, a Sequoia Capital general partner, recently predicted data center delays across the sector. Bernstein Research recently estimated that electricity demand for AI data centers could exceed supply in just two years without action. An Amazon data center in Oregon.
Persons: , It's, David Cahn, Marc Wulfraat, MWPVL, we've, Bernstein, Amazon's, Matt Garman, JOSH EDELSON, Garman, Manuel Pineda, Pineda, Owens Corning Organizations: Service, Sequoia Capital, Energy, Amazon, Boston Consulting Group, Bernstein Research, Business, Web, San Francisco 49ers, BI, AWS, Uptime Institute, Center, Survey Locations: AMER, Americas, Oregon , Ohio, Northern Virginia, Amazon's Portland, Arizona, Indiana, Pennsylvania, Silicon Valley, Santa Clara , California, Santa Clara, Levi's, City, Santa, Oregon
Amazon Web Services CEO Matt Garman defended the company's return-to-office mandate for January. AdvertisementAmazon Web Services CEO Matt Garman reiterated on Monday night why the recently announced return-to-office mandate is right for the company. Amazon CEO Andy Jassy announced last month that most corporate employees would be required to return to the office five days a week starting in January. When BI reached out about Garman's comments last week, an Amazon spokesperson declined to comment but pointed to Jassy's RTO announcement in September. BI's Ashley Stewart viewed internal messages after the policy was announced, showing that some Amazon employees were unhappy with the change.
Persons: Matt Garman, Garman, , Andy Jassy, BI's Ashley Stewart Organizations: Amazon Web, Service, Web, Amazon, Business, BI
Nine out of 10 employees are 'excited' by the change, Garman said, but those who disagree are welcome to leave. AdvertisementThe majority of Amazon employees favor the company's new five-day return-to-office policy, Amazon Web Services CEO Matt Garman has told staff during an all-hands meeting. Garman addressed the RTO policy introduced by Amazon in September, which has faced strong pushback from some employees. It is Garman's first official response to Amazon's new RTO policy and comes after the company received backlash from some employees. Related storiesDuring the all-hands meeting, Garman said employees will not always need to be in the office.
Persons: Matt Garman, Garman, , we're, Andy Jassy's Organizations: Business, Service, Amazon, Web, AWS
LONDON — Cybersecurity firm Wiz is seeking to hit $1 billion of annual recurring revenues next year, the company's billionaire co-founder Roy Reznik told CNBC, adding that the firm will go public "when the stars align." Earlier this year, the company rejected a $23-billion acquisition bid from Google , which would have marked the tech giant's largest-ever takeover. At the time, Wiz CEO Assaf Rappaport said the startup was "flattered" by the offer, but would remain an independent company and aim to list instead. "We've already broken a few records as a private company, and we believe we can also break a few more records as an independent public company as well," Reznik said. Four-year-old Wiz has raised $1.9 billion in venture capital to date, including $1 billion secured this year in a funding round led by Andreessen Horowitz, Lightspeed Venture Partners and Thrive Capital at a valuation of $12 billion.
Persons: Wiz, Roy Reznik, Assaf Rappaport, Reznik, Andreessen Horowitz Organizations: CNBC, Amazon Web Services, Microsoft, Google, Lightspeed Venture Partners Locations: Tel Aviv, Israel, London
Independent power producers Vistra , Constellation Energy and Talen Energy are positioned to benefit from a "paradigm shift" in electric demand from artificial intelligence data centers, according JPMorgan. "We see structural tailwinds, including manufacturing onshoring, broader electrification trends (transportation, heating, and more), as well [as] data center development underpinning a paradigm shift in power demand," Tonet and his team told clients in research report. Demand from tech companies for carbon-free power to drive their data centers will transform nuclear power and enable its owners to "command a substantial premium," they wrote. CEG 1Y mountain Constellation Energy shares over the past 12 months. TLN 1Y mountain Talen Energy stock over the past year
Persons: Jeremy Tonet, Tonet, Vistra Organizations: Constellation Energy, Talen, JPMorgan, Lone Star State, VST, Microsoft, Constellation, Amazon Web Services, Susquehanna, Energy Locations: Wednesday's, Texas, Pennsylvania
Amazon 's cloud boss on Thursday gave employees a frank message about the company's recently announced five-day in-office mandate. Staffers who don't agree with Amazon's new policy can leave, Amazon Web Services CEO Matt Garman said during an all-hands meeting at the company's second headquarters in Arlington, Virginia. "If there are people who just don't work well in that environment and don't want to, that's OK, there are other companies around," Garman said, according to a transcript viewed by CNBC. The company's previous return-to-work stance required corporate workers to be in office at least three days a week. The move has spurred backlash from some Amazon employees who say they're just as productive working from home or in a hybrid work environment as they are in an office.
Persons: Matt Garman, Garman, Adam Selipsky, he's, didn't Organizations: Amazon Web, CNBC, Reuters, Amazon, Employees, Microsoft, Google, AWS Locations: Arlington , Virginia
Amazon Web Services is investing over $500 million in nuclear power, announcing three projects from Virginia to Washington State. Amazon is the latest large tech company to buy into nuclear power to fuel the growing demands from data centers. An estimated 70% of the world’s internet traffic travels through Data Center Alley each day. “Small modular nuclear reactors will play a critical role in positioning Virginia as a leading nuclear innovation hub,” said Virginia Gov. “Amazon and X-energy are poised to define the future of advanced nuclear energy in the commercial marketplace,” said X-energy CEO J. Clay Sell.
Persons: It’s, there’s, , Matthew Garman, Bob Blue, Glenn Youngkin, Youngkin, Garman, Ken Griffin, Clay Organizations: Amazon, Services, Washington State, AWS, Amazon’s, Dominion Energy, Nuclear, Google, Kairos, Constellation Energy, Microsoft, Dominion, Gov, Energy, Fund, Citadel, Ares Management Corporation, NGP, University of Michigan, Talen Energy, Susquehanna Steam Electric Locations: Virginia, Washington, Dominion’s, SMRs, ” Virginia, U.S, Northern Virginia, Loudon County, Washington State, Northwest, Maryland, Salem Township , Pennsylvania, Talen
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