Is Amazon's Golden Goose Turning Into a Red Flag?

Core Insights - Amazon's cloud business, AWS, is losing market share to Microsoft Azure and Google Cloud, which are growing at faster rates [3][6][14] - AWS revenue growth was 17% year-over-year in Q2, significantly slower than Microsoft Azure's 39% and Google Cloud's 32% [6][18] - Despite AWS's slowing growth, Amazon's overall revenue and market cap remain strong, with a total revenue of $670 billion and a market cap of $2.4 trillion [4][10] AWS and E-commerce Synergy - AWS generates most of Amazon's profit, supporting its e-commerce business through AI capabilities [2][15] - The integration of AWS with Amazon's other ventures, such as Project Kuiper, enhances its competitive position [17] Competitive Landscape - Microsoft leverages its established software products to drive Azure growth, while Google is capitalizing on its advanced AI capabilities [8][9] - Amazon's revenue advantage allows for significant R&D spending, which is crucial for attracting top talent in AI [12][19] Long-term Growth Potential - Amazon's non-retail businesses, which have high margins, have contributed to a 31% year-over-year growth in total operating profit [18] - The company's substantial R&D investment, nearly $100 billion annually, positions it for potential upside surprises in the long term [19]