Microsoft and Amazon Report Strong Growth Despite Concerns
Microsoft (NASDAQ: MSFT) and Amazon (NASDAQ: AMZN) recently released earnings reports showcasing significant growth in their cloud divisions, though both companies are facing challenges due to soaring capital expenditures in artificial intelligence infrastructure. Microsoft’s Azure cloud revenue exceeded $100 billion for the first time, marking a 43% year-over-year increase, while Amazon Web Services (AWS) generated $42.2 billion, its strongest growth in 18 quarters at 37% year-over-year.
Microsoft’s paid Copilot subscribers rose by 10 million to 30 million, doubling prior quarter additions, while Amazon raised its full-year capital expenditure projection to $220 billion. Analysts are generally optimistic; 34 out of 35 analysts recommend Microsoft as a buy, with an average price target suggesting 21% upside. For Amazon, 37 out of 38 analysts recommend the stock, with an average price target implying roughly 23% upside.
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