Amazon closes out hyperscaler earnings with focus on cloud growth and AI spend

Core Insights - Amazon's cloud business remains a focal point, holding a 30% market share, while Microsoft is at 20% [1] - Year-over-year growth expectations for Amazon are critical, with a target of 18.5% to 19%; failure to meet this could negatively impact stock performance [2] - Google, while currently a distant third in cloud market share, has shown an 80% increase in backlog, indicating a strong revenue pipeline [4] Company Performance - Amazon's profitability is primarily driven by its cloud business, with its advertising segment also experiencing significant growth [5] - The company is facing challenges with its legacy infrastructure, particularly in servicing AI workloads, prompting questions about future compute capacity [7] - Capital expenditure (capex) is a key area of focus, with Amazon's projected capex for the fiscal year at around $100 billion, compared to Microsoft's $140 billion [8]