We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Will Amazon's (AMZN) Q2 Earnings Benefit From AWS Momentum?
Read MoreHide Full Article
Amazon’s (AMZN - Free Report) second-quarter 2024 results, scheduled to be released on Aug 1, are likely to reflect gains from its strengthening cloud service offerings.
AMZN’s cloud computing division, Amazon Web Services (“AWS”), dominates the cloud market on the back of its growing adoption and popularity. This is anticipated to be reflected in the company’s second-quarter results.
We note that the solid momentum across AWS has been aiding Amazon in generating high margins from the cloud business. The trend is expected to have continued in the to-be-reported quarter.
AWS’s revenues were $25.04 billion, accounting for 18% of net sales in first-quarter 2024, rising 17% year over year. We further note that its operating income was $9.4 billion, up 83.9% year over year.
The Zacks Consensus Estimate for second-quarter 2024 AWS sales is pegged at $25.9 billion, indicating an improvement of 16.8% from the year-ago quarter’s reported figure.
Click here to know how the company’s overall second-quarter performance is likely to have been.
A strong cloud services portfolio and expanding generative AI capabilities are expected to have aided the performance of AWS in the second quarter.
AWS is gaining significantly from the solid adoption of Amazon Bedrock.
In the quarter under review, the company introduced Bedrock innovations, including custom model import capability and model evaluation capabilities, and Guardrails. These features are designed to provide customers a secure, easy and fast way to develop advanced generative AI applications.
With a wide selection of foundation models from AI21 Labs, Anthropic, Cohere, Meta, Mistral AI and Stability AI, Bedrock offers seamless deployment, scalability and continuous optimization.
AWS also made its generative AI-powered assistant called Amazon Q generally available.
On the back of portfolio strength, AWS witnessed solid customer momentum in the second quarter.
NinjaTech AI partnered with AWS to launch its next-generation AI agent called Ninja, which has been trained using the latter’s machine learning (ML) chips Trainium and Inferentia2 in order to make them powerful and useful.
CrowdStrike (CRWD - Free Report) extended its strategic partnership with AWS to accelerate cloud security and AI innovation. Notably, CrowdStrike is using Amazon Bedrock and Amazon SageMaker in order to boost innovation in SIEM transformation, and novel cybersecurity AI use cases. More precisely, CRWD aims to accelerate the development of generative AI capabilities in its Falcon Platform.
In addition, Brightcove started using Amazon’s generative AI assistant called Amazon Q Business on AWS internally for real-world use cases applicable to the enterprise, media and entertainment technology sectors.
BlackBerry recently unveiled a generative AI-backed cybersecurity advisor called Cylance Assistant, which leverages Amazon Bedrock to enable organizations to enhance their cybersecurity operations.
Zilch extended its collaboration with AWS to expand the use of the latter’s AI and ML services in order to accelerate sales in the next two years, and improve customer service and lending decisions.
FWD Group Holdings selected AWS as its strategic cloud provider in the second quarter.
Also, SAP (SAP - Free Report) teamed up with AWS to embed generative AI solutions across its enterprise resource planning (ERP) applications. SAP integrates generative AI models from Amazon Bedrock, such as the Anthropic Claude 3 model family and Amazon Titan, into its generative AI hub in SAP AI Core.
Formula 1 partnered with AWS to introduce a generative AI-designed F1 trophy for the Canadian Grand Prix.
We note that the strengthening customer base is likely to have driven AWS's top-line growth in the second quarter. It is also expected to have aided Amazon, which currently carries a Zacks Rank #2 (Buy), in sustaining its cloud dominance against its strong contenders like Microsoft and Alphabet (GOOGL - Free Report) . You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Image: Bigstock
Will Amazon's (AMZN) Q2 Earnings Benefit From AWS Momentum?
Amazon’s (AMZN - Free Report) second-quarter 2024 results, scheduled to be released on Aug 1, are likely to reflect gains from its strengthening cloud service offerings.
AMZN’s cloud computing division, Amazon Web Services (“AWS”), dominates the cloud market on the back of its growing adoption and popularity. This is anticipated to be reflected in the company’s second-quarter results.
We note that the solid momentum across AWS has been aiding Amazon in generating high margins from the cloud business. The trend is expected to have continued in the to-be-reported quarter.
AWS’s revenues were $25.04 billion, accounting for 18% of net sales in first-quarter 2024, rising 17% year over year. We further note that its operating income was $9.4 billion, up 83.9% year over year.
The Zacks Consensus Estimate for second-quarter 2024 AWS sales is pegged at $25.9 billion, indicating an improvement of 16.8% from the year-ago quarter’s reported figure.
Click here to know how the company’s overall second-quarter performance is likely to have been.
Amazon.com, Inc. Price and Consensus
Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote
Factors to Note
A strong cloud services portfolio and expanding generative AI capabilities are expected to have aided the performance of AWS in the second quarter.
AWS is gaining significantly from the solid adoption of Amazon Bedrock.
In the quarter under review, the company introduced Bedrock innovations, including custom model import capability and model evaluation capabilities, and Guardrails. These features are designed to provide customers a secure, easy and fast way to develop advanced generative AI applications.
With a wide selection of foundation models from AI21 Labs, Anthropic, Cohere, Meta, Mistral AI and Stability AI, Bedrock offers seamless deployment, scalability and continuous optimization.
AWS also made its generative AI-powered assistant called Amazon Q generally available.
On the back of portfolio strength, AWS witnessed solid customer momentum in the second quarter.
NinjaTech AI partnered with AWS to launch its next-generation AI agent called Ninja, which has been trained using the latter’s machine learning (ML) chips Trainium and Inferentia2 in order to make them powerful and useful.
CrowdStrike (CRWD - Free Report) extended its strategic partnership with AWS to accelerate cloud security and AI innovation. Notably, CrowdStrike is using Amazon Bedrock and Amazon SageMaker in order to boost innovation in SIEM transformation, and novel cybersecurity AI use cases. More precisely, CRWD aims to accelerate the development of generative AI capabilities in its Falcon Platform.
In addition, Brightcove started using Amazon’s generative AI assistant called Amazon Q Business on AWS internally for real-world use cases applicable to the enterprise, media and entertainment technology sectors.
BlackBerry recently unveiled a generative AI-backed cybersecurity advisor called Cylance Assistant, which leverages Amazon Bedrock to enable organizations to enhance their cybersecurity operations.
Zilch extended its collaboration with AWS to expand the use of the latter’s AI and ML services in order to accelerate sales in the next two years, and improve customer service and lending decisions.
FWD Group Holdings selected AWS as its strategic cloud provider in the second quarter.
Also, SAP (SAP - Free Report) teamed up with AWS to embed generative AI solutions across its enterprise resource planning (ERP) applications. SAP integrates generative AI models from Amazon Bedrock, such as the Anthropic Claude 3 model family and Amazon Titan, into its generative AI hub in SAP AI Core.
Formula 1 partnered with AWS to introduce a generative AI-designed F1 trophy for the Canadian Grand Prix.
We note that the strengthening customer base is likely to have driven AWS's top-line growth in the second quarter. It is also expected to have aided Amazon, which currently carries a Zacks Rank #2 (Buy), in sustaining its cloud dominance against its strong contenders like Microsoft and Alphabet (GOOGL - Free Report) . You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.