Why Google and Microsoft results have increased pressure on Amazon’s Cloud business

Amazon faces heightened pressure to deliver strong cloud computing results in its upcoming fourth-quarter earnings report, as recent disappointing performances from tech rivals Microsoft and Google have raised questions about massive AI investments across the industry.

Major tech stocks have experienced significant gains over the past two years, driven by expectations that AI technologies would fuel sustained datacenter expansion. However, recent developments, including Chinese startup DeepSeek’s claimed AI breakthroughs at reduced costs, have triggered a technology sector selloff.