Amazon (AMZN) should publish quarterly results after the bell Thursday, following a mixed projection of its large technological peers and a upheaval of the market on the emergence of Chinese AI Deepseek.
Amazon’s revenues occurred after Cloud Rival Microsoft (MSFT) and Google (Googl, Googl) have missed expectations for cloud sales during the quarter. Microsoft recorded a turnover of $ 40 billion, with Wall Street providing $ 41.1 billion, and Google said sales of $ 11.9 billion. Analysts sought $ 12.1 billion.
The two companies blamed the failures to have a lack of ability to meet the demand for cloud and AI services.
Microsoft and Google’s actions opened in the morning after their reports, Microsoft’s shares falling 6% and Google Parent Alphabet down 7%.
Amazon is the largest cloud supplier in the world and, like Microsoft and Google, invests furiously in the creation of its IA infrastructure capacities to meet demand. In the third quarter, CEO Andy Jassy told shareholders that the company planned to spend $ 75 billion on capital expenditure in 2024, and even more in 2025.
For the fourth quarter, Amazon should display a profit per share of $ 1.50 on a turnover of $ 187.3 billion, up compared to a BPA of $ 1.00 and a turnover of 169.9 billion dollars that the company posted during the same period last year.
Amazon web services returned should start at $ 28.8 billion, compared to $ 24.2 billion last year, while the company’s advertising revenues should reach $ 17.3 billion, compared to $ 14.6 billion in the fourth quarter of 2023.
Investors will also turn to Amazon leaders to meet the success of Breakout of the Deepseek R1 model.
Just before the first wave of technological income, the growing popularity of Deep Seek sent Wall Street a panic when investors wondered how a dress with a modest budget and the lack of cutting -edge fleas could produce a model of AI to compete with those of the most well capitalized technological companies in the United States.
Amazon, like Microsoft, has already rendered the AI model of Deepseek available via its AI service platform, giving users the possibility of accessing and using AI software as they wish.
Amazon leaders said his AI company had already generated billions of dollars for his cloud unit. And the company expects AWS to generate more than $ 105 billion for the year. Capex for AWS is expected to exceed $ 14.5 billion for the quarter, according to Bloomberg Data.
Analysts expect Amazon’s advertising operations to be a light point. Although it is still in the early stages of monetizing advertising spaces in the premium video, advertising revenues should increase by almost 20%, according to Bloomberg data.
