Catenaa, Thursday, February 05, 2026- Investors will be looking at Amazon cloud business earnings due on Thursday after shares of Microsoft fell last week on its slow growth forecast cloud-computing platform.
This was not an issue for Amazon’s October earnings, as its shares jumped almost 10% following better-than-expected revenue from Amazon Web Services, also known as AWS.
Now, however, fear is rippling through the tech sector, and Amazon investors are increasingly concerned that the slowdown at Microsoft’s Azure indicates broader weakness for cloud providers.
Microsoft shares are down over 17% since the report on January 28, erasing more than $500 billion in market value.
Amazon shareholders are seeking catalysts for a stock that has been languishing for a while. It was the worst performer among the Magnificent Seven tech giants last year, rising just 4.2%, and is up less than 1% to start 2026.
By comparison, the Nasdaq 100 Index jumped 20% in 2025, while the S&P 500 Index gained 16%, although Amazon is slightly outperforming both this year.
Wall Street expects Amazon to report a 21% year-over-year increase in AWS revenue in the fourth quarter to $34.8 billion.
For the company as a whole, analysts project a 13% jump in fourth-quarter revenue to $211.5 billion and an 8% increase in adjusted earnings per share to $2.40.
On Wednesday, Alphabet reported strong cloud growth in its latest earnings, but the stock dipped in extended trading after the Google parent also said it plans to spend far more than expected on 2026 capital expenditures, the other issue hanging over tech shares.
Indeed, Amazon shares are relatively cheap based on their history. The stock trades at about 24 times forward earnings, far below its 10-year average multiple of 46.
