Google Cloud grew 103%. AWS grew 39%. Investors sold both.
Alphabet’s shares fell more than 12% on 29 October; Amazon’s dropped more than 6% after its results. The cloud boom has a bill: each more than doubled its quarterly spending on buildings and equipment. In the 12 months to September, the cash left after that spending fell to $19.7B at Alphabet, from $73.6B a year earlier, and to −$42.4B at Amazon, from $14.8B.
Both are trading today’s cash for tomorrow’s AI revenue. Whether that trade is right is a strategy question, best judged against an alternative.
Strategist is built to supply one: an independent strategy for any public company, with management’s benchmarked against it and every source shown.
Would you make the same trade? strategist.intelligenxe.com
