Bold prediction for the cloud does not hold Amazon shares after 3rd quarter earnings

Amazon shares fell after the release of its third quarter earnings, and the cloud forecast, described as bold, was not enough to contain the decline, according to MarketWatch. The movement shows that the market looked at the set of numbers and not just the company's best news.

The publication highlights that the announcement about the cloud did not prevent the devaluation of shares. AWS, the company's cloud computing arm, is one of the segments most watched by investors, and it was precisely there that the market's reading began to get colder.

According to MarketWatch, AWS' results were modest, which weighed on investors' assessment even given the projection presented for the segment.

In the same reading, Amazon advertising appeared as another weak point, with growth described as weak by the publication.

Overall, Wall Street was disappointed with the quarter's profit, according to the vehicle. When expectations are not confirmed in reported numbers, an ambitious projection loses strength as an argument to support prices.

What is at stake is the company's ability to transform promises into results. The facts collected do not provide revenue, profit or share variation values, so it is not possible to measure the exact size of the drop or compare the numbers with market estimates.

What changes for the investor

The episode reinforces that, in balance sheets, the market compares results with expectations, and not just with isolated good news. A bold cloud forecast didn't make up for modest AWS results, weak advertising growth and disappointing earnings. For those who follow the company, it is worth observing in the next balance sheets whether AWS and advertising gain traction and whether profits return to meet expectations. This article does not provide a purchase or sale recommendation or price projections.

Automatically translated from Portuguese.