Posted November 01, 2018 03:00:03 The technology giant Amazon has come under fire after it said it will not invest in the cloud.
The company’s cloud business is already highly profitable, but a report from Bloomberg showed the cloud’s impact on the company has been minimal.
Amazon’s cloud platform has been around since its inception in 1999 and has grown to become a major player in the world’s largest online shopping market.
But analysts and others say that while Amazon’s cloud services are profitable, they are far from the best way to run a company.
Bloomberg’s study said Amazon would need to buy a $2 billion stake in a company that was already profitable to make a dent in the company’s bottom line.
“Amazon’s recent performance is a sign that it will miss its $2B bet,” said Mike Gartenberg, an analyst at Forrester Research.
The data, published Wednesday by Bloomberg, showed Amazon was valued at $1.5 trillion in the first quarter of 2019, down 10 percent from a year earlier.
Analysts at Morgan Stanley say the company should look to buy more assets to boost its cloud business.
At the same time, analysts say Amazon needs to make sure its cloud services don’t become too costly to run.
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