Amazon Reports Fifth Straight Quarter of Cloud Sales Growth & Apple Sales Slow Down

The people, companies and trends shaping the global economy. Watch Carol and Tim LIVE every day on YouTube: http://bit.ly/3vTiACF.

Amazon.com reported cloud-computing revenue that accelerated for the fifth straight quarter, easing investors’ concerns that the company won’t produce a return on its spending to meet booming demand for artificial intelligence.Revenue jumped 37% to $42.2 billion at Amazon Web Services, which generates about a fifth of the company’s revenue and most of its operating profit, Amazon said Thursday in a statement. It was the fastest pace of growth since the fourth quarter of 2021. Analysts, on average, forecast sales of $40.6 billion, according to data compiled by Bloomberg.

Like its Big Tech peers, Amazon is spending heavily on data centers and chips in an effort to take advantage of rising demand for AI and cloud-computing services. The company reported spending more than $53 billion on property and equipment, including proceeds from some sales, in the period ended June 30.

Meanwhile, Apple Inc. sales grew more slowly than analysts anticipated in China and its services business last quarter, sparking concerns about two key markets for the iPhone maker.Though total revenue topped estimates, the China sales amounted to $18.8 billion in the fiscal third quarter, well short of the $19.6 billion estimated by analysts. Revenue from services was $30.7 billion, compared with a $31.4 billion projection.

On this episode, Carol Massar and Tim Stenovec speak with:

• Poonam Goyal, Bloomberg Intelligence Senior Analyst for E-Commerce and Athleisure
• Anurag Rana, Bloomberg Intelligence Senior Technology Analyst
• Ed Ludlow, Bloomberg Tech Host 
• Mark Gurman, Bloomberg News Managing Editor for Global Consumer Tech
• Dani Burger, Bloomberg 'Open Interest' Co-Host, with Jersey Mike's CEO Charlie Morrison on JMKE IPO
• Stuart Paul, Bloomberg Economics US & Canada Economist AND Ira Jersey, Bloomberg Intelligence Chief US Interest Rate Strategist on Wall Street's message to Kevin Warsh

See omnystudio.com/listener for privacy information.