TSP Weekly Tech Stock Update—Oct 28, 2023
This Week: Nasdaq in correction mode, Azure shines, AWS stabilizes, Google Cloud disappoints, ServiceNow delivers strong Q3 results, Adobe gets upgraded & more.
Hello from Rob…
—Shares of Amazon (AMZN, $127.74) on Friday gained 6.8% after the company reported stabilization in AWS growth in Q3 and offered some encouraging commentary about the Q4 cloud business. In Q3, AWS revenue of $23.1 billion rose 12%, matching the Q2 growth rate. AWS is now on an annual revenue run rate of just over $92 billion.
On the Q3 call, Amazon CEO Andy Jassy said cloud cost optimization headwinds remain “elevated” relative to a year ago, but continue to subside as more companies transition to deploying net new workloads. He noted that the pace and volume of closed deals has recently picked up.
AWS signed “several” new cloud deals in September that will show up in Q4 numbers, according to Jassy. He noted that the total value of these deals was “higher than our total reported deal volume for all of Q3.” This should drive an acceleration in Q4 AWS growth, helped out by a much easier year-over-year comp relative to Q3. More details on all of the big cloud providers inside this issue.
*Inside This Issue: ServiceNow (NOW) is an early Q3 earnings season winner.
—Paid subscribers will receive the November 2023 PDF of Tech-Stock Prospector (TSP #261) via email on Tuesday, November 7.
—Paid subscribers have access to the TSP Market Overview and TSP Portfolio Updates sections inside this issue.