Will Bezo's super company, Amazon, surpass its predicted earnings or will it follow suit of its competitors and fail to meet expectations?
Industry giant, Amazon (AMZN), is set to release its earnings after fellow competitors fell short of their predictions. Both Microsoft and Google were 2 of the major companies that use cloud services, but both fell short due to a "lack of capacity".
The Chinese company "DeepSeek" seems to be shaking up the tech world as they claim they have been able to revolutionize the tech game in a cheaper fashion. A lot of these big tech companies have been downplaying DeepSeek but the market seemed to feel the pressure as NVDIA plummeted.
What Does This Mean for Amazon?
The emergence of new Ai and cloud software is definitely something that Amazon needs to be worried about. Although it is the largest cloud provider, it did not get there by being cheap. Amazon shelled out a whopping 75 billion dollars on capital expenditures and they plan on spending even more in 2025. They will be forced to constantly innovate and may need to find ways to cut expenses at it is reported that DeepSeek is on par with these giants but does not need to invest all the money they need to in order to make a name for themselves.
Should You Invest?
As always, do your own research. I personally think Amazon is a great investment to add to your portfolio. I say this for many reasons. For one, the world is becoming more and more digital, and Amazon is a huge online retailer that offers fast shipping, low prices and has a plethora of items always in stock. I just do not see this beast being stopped any time soon but that is not the only reason. Hamza Shaban and Daniel Howley have reported that "Amazon Web Services revenue is set to top out at $28.8 billion, up from $24.2 billion last year, while the company's ad revenue is expected to climb to $17.3 billion from $14.6 billion in Q4 2023". This is vital information that reveals to us as investors that Amazon is doing something right and there are no signs of stopping. To gain not only millions of dollars more but billions is an insane feat and is something you as an investor should take note on.
Feel free to share any thoughts, feelings, and opinions below!
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