Amazon shares fall after AWS misses expectations and ad revenue stalls

Amazon released its third‑quarter earnings on Thursday, reporting revenue and profit figures that disappointed Wall Street. The results highlighted modest performance from its Amazon Web Services (AWS) unit and weaker‑than‑expected growth in advertising sales.

Despite a forward‑looking statement that emphasized a strong outlook for its cloud business, the company’s earnings miss triggered a decline in the stock. The market reaction underscored investors’ sensitivity to AWS and ad revenue trends.

Impact on Cloud and Advertising Segments

AWS remains a major contributor to Amazon’s profitability, while advertising represents a growing source of income for the retailer. A slowdown in either segment can raise concerns about the company’s future earnings trajectory.

Analysts and investors may now scrutinize Amazon’s subsequent guidance for AWS and its advertising division, as well as the broader implications for the cloud computing and e‑commerce sectors.

The earnings miss and subsequent stock movement could prompt a reevaluation of Amazon’s valuation multiples and influence sentiment toward technology stocks that rely heavily on cloud services.

Based on reporting from MarketWatch. Read the original.