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By Deborah Mary Sophia

Feb 5 (Reuters) - The pressure is on Amazon.com to deliver on lofty expectations for cloud computing in its fourth-quarter results on Thursday, after Microsoft and Google's uninspired reports jolted investor faith in Big Tech's billion-dollar financial investments in AI.

Shares of significant tech companies rose in the past two years on the belief that enormous datacenter requires for artificial-intelligence innovations would power financial investment for many years.

But that was before Chinese startup DeepSeek said it had actually attained AI advancements at a fraction of the cost, precipitating a selloff in technology stocks that some state was overdue.

Still, clashofcryptos.trade Amazon may be much better located than competitors to profit from more affordable AI, analysts state, due to its massive cloud business and lower exposure to expensive large-language designs that power apps like ChatGPT.

Amazon Web Services, larsaluarna.se the world's largest cloud companies, is anticipated to publish its greatest income increase in eight quarters at 19.3%, according to data assembled by LSEG.

But Microsoft and Meta were both required to protect their AI budget recently, and shares of Google-parent Alphabet dropped 8% on Wednesday after it said it would be spending more on capex than experts prepared for.

"Microsoft and Google results have actually put a lot more of a microscopic lense on Amazon's cloud development," said Dave Wagner, portfolio supervisor at Aptus Capital Advisors, which holds shares in all 3 innovation companies.

"But if Amazon can squash it on their cloud numbers, the market's going to definitely like that report."

The company was the first huge cloud supplier to embrace DeepSeek's AI models last month and has said its capital spending, mainly on AI, would be more than the $75 billion it approximated for bybio.co 2024.

Slowing development at Microsoft Azure and Google Cloud, the second- and third-biggest cloud gamers, has actually sparked some caution from analysts about AWS' performance.

"Microsoft said it was capability constrained, Google said it was capacity constrained. More than likely, Amazon is going to say it may have been capability constrained as well which's why its development rate isn't rather approximately what the market may have anticipated," said Bob O'Donnell, primary analyst at TECHnalysis Research.

Some experts see the weakness at rivals as a sign that Amazon might have captured up in the AI race through efforts consisting of doubling its investment in Anthropic and using a wide choice of AI designs on its cloud platform.

"We actually think that AWS is regaining share. It had been growing a lot slower than Microsoft Azure and Google Cloud for a period of time, however we believe that as Amazon has captured up on its AI offering, it may have less of a deceleration than Azure and Google Cloud," D.A. Davidson analyst Gil Luria said.

The company has maintained a greater appraisal than a few of its rivals, with an existing forward price-to-earnings ratio of nearly 39. Microsoft's forward P/E is 29 and Alphabet's 22.4, timeoftheworld.date according to LSEG data.

RETAIL STRENGTH

The e-commerce giant's outcomes are also likely to gain from a healthy holiday shopping season, after rival retailers such as Target and annunciogratis.net a slew of apparel companies issued rosy projections over the previous month.

Amazon's North American sales for the 4th quarter are predicted to increase 9% year-on-year. After a downturn in online sales growth previously this year, analysts say Amazon is primed for a rebound in the retail service, which has affected its post-earnings share movements over the previous two quarters.

Data from showed U.S. shoppers spent lavishly online between November and December 2024, investing more than $240 billion, drawn by deep discounts on whatever from TVs to toys.

The vacation spending growth rate of 8.7% almost doubled from the 4.9% recorded in 2023, raovatonline.org the information revealed.

Amazon has likewise attempted to improve shipment times and expanded item merchandise, including its concentrate on grocery, pharmacy and fashion - relocations experts state will help propel development.

"Most signs are that it was a great quarter. There was an excellent holiday for the customer therefore there's lots of factor to believe Amazon will have done well in that side of business," Luria said.

(Reporting by Deborah Sophia in Bengaluru; Editing by Pooja Desai)