Amazon (AMZN) Cloud Revenue Watched Amid Microsoft Azure Slowdown

Amazon.com Inc. (AMZN)’s cloud business is the top focus for Thursday’s earnings report, as Microsoft Corp. (MSFT) shares fell 14% since its Jan. 28 Azure growth report, erasing over $500B in market value and spurring concern about broader cloud weakness. AWS revenue is forecast to rise 21% YoY to $34.8B in Q4, with full-year revenue expected at $211.5B and adjusted EPS up 8% to $2.40. Amazon is the worst performer among the Magnificent Seven, up just 5.2% last year and 1% in 2026, trading at 24x forward earnings versus a 46x average over the past decade. Investors will also watch for margin expansion, AI retail momentum via Rufus, and guidance on $50B in potential OpenAI investment. The $9.5B pretax gain on its Nov. 2024 $8B stake in Anthropic (CLVD) contributed to Q3 profit growth of 38%, with a $10B potential round valued at $350B pending. If Azure’s softness signals sector-wide deceleration, strong AWS results will be crucial for AMZN to reverse its估值 and support broader tech shares.