Amazon's cloud stabilizing, shoppers cautious heading into holiday season
-Amazon.com on Thursday said growth in its cloud business is stabilizing as it signed new deals, but warned that consumers remained wary about spending going into the holiday quarter.
At the same time, it has faced an array of challenges, among them tight household budgets, businesses scrutinizing their cloud spending and a September lawsuit by the U.S. Federal Trade Commission, which accuses Amazon of inflating prices and wielding monopoly power. The company is contesting the claims.
"We could be looking at a final spending push before a substantial pull back in the new year. So, this is a risk that will need monitoring closely," she said. CEO Andy Jassy added in a call with analysts that AWS was picking up the pace of signing and closing deals, among them large expansions with existing customers as well as first-time agreements. He said in a statement:"Our AWS growth continued to stabilize."
CFO Olsavsky said the company in general saw strong demand in sales categories such as beauty and health, although discretionary spending was lower. Several initiatives helped Amazon navigate the terrain. The company has said a third-quarter shopping blitz known as Prime Day notched its biggest sales day ever, while a follow-up promotion period was its largest October holiday kickoff to date.
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