On Friday, February 7, 2025, Amazon.com stock prices plunged four percent after investors lost confidence in the technology giant’s cloud computing revenue figures, which came up short of expectations regarding their AI investment return. Amazon’s market value decreased by $100 billion during the Friday share market decline.
Amazon demonstrated earnings higher than analyst predictions during 2024, yet its stock value decreased on Friday due to investor attention on its projected first-quarter revenue growth, which came below market expectations.
The current stock value of Amazon induces investors to be concerned about its performance.
Shares of Amazon suffered from two factors: Amazon Web Services generated weaker performance results, and the company provided conservative guidance regarding revenue and profit figures for the upcoming first quarter.
Numerous analysts reported slower-than-expected growth outcomes both at Microsoft and Google, which is controlled by Alphabet, during their recent quarterly financial results.
The news arrives as US cloud-computing entities encounter rising investor attention concerning their AI spending following DeepSeek’s recent release of a budget-friendly AI solution. The Amazon stock price experienced a four percent growth in 2025 and Microsoft and Alphabet stock values both decreased by three percent.
Amazon Web Services delivered a revenue increase of 19% to $28.79 billion, which matched the analysts’ estimates of $28.87 billion. The quarterly earnings demonstrated an identical rate of growth as the October period. Alphabet and Microsoft achieved major growth in their quarter cloud revenue, yet these numbers missed investor projection targets.
During the October-December period, Amazon reported $187.8 billion in revenue, which was a 10 percent increase from the same quarter in 2023. Amazon reported earnings of $20 billion in profits and $1.86 per share above the FactSet analyst projection of $1.49 per share.
AWS Revenue Disappoints
Amazon Web Services (AWS), the company’s cloud unit, reported a 19% increase in revenue, reaching $28.79 billion. While still representing growth, this figure fell short of analysts’ expectations of $28.87 billion.