Amazon’s Slowing Cloud-Computing Sales Expected to Linger
- Amazon Web Services revenue fell just short of estimates
- Holiday sales gained 9% to $149 billion on e-commerce
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Amazon.com Inc. tempered a recent feel-good period for investors by reporting that consumer demand remains soft and sales in its lucrative cloud-computing division will continue to slow through the year. The shares fell in extended trading.
The company’s core business of selling goods in North America lost money for the fifth straight quarter despite job cuts and a pause in opening new warehouses begun last year. Amazon Web Services is losing its luster with slowing growth and shrinking profit margins after a stellar run during the pandemic.