Amazon soars 10% as earnings beat estimates, company posts strong cloud growth

Core Insights - Amazon is set to release its third-quarter results, with a focus on AWS growth amid increasing competition from Google and Microsoft [1][2] - AWS is projected to grow 18.1% year-over-year, maintaining the same growth rate as the previous quarter, while competitors Google Cloud and Microsoft Azure reported significantly higher growth rates of 34% and 40% respectively [2] - The company is facing challenges in the perception of missing out on lucrative AI cloud service deals, as competitors secure substantial partnerships [3][4] Financial Performance - Expected earnings per share for Amazon are $1.57, with total revenue projected at $177.8 billion [5] - AWS revenue is anticipated to be $32.42 billion, while advertising revenue is expected to reach $17.34 billion [5] Competitive Landscape - AWS recently experienced a significant outage lasting over 15 hours, impacting numerous websites, which raises concerns about reliability compared to competitors [2] - Amazon has launched Project Rainier, an $11 billion AI data center aimed at enhancing its capabilities in AI, particularly in collaboration with Anthropic [4] - CEO Andy Jassy emphasized AWS's strong market position but acknowledged the early stage of the AI industry, which is currently dominated by a few large models [5]