Amazon.com dropped in late trading after projecting weaker-than-expected operating income and trailing the sales growth of its cloud rivals, leaving investors searching for signs that the company’s huge investments in artificial intelligence are paying off. Operating profit will be $15.5 billion to $20.5 billion in the period ending in September, compared with an average estimate of $19.4 billion. Sales will be $174 billion to $179.5 billion, the company said Thursday in a statement. Analysts, on average, expected $173.2 billion. Chief Executive Officer Andy Jassy is engaged in an AI infrastructure arms race with Microsoft Corp. and Alphabet Inc. that requires heavy spending on data centers. Both of those rivals earlier reported strong earnings showing they are benefiting from the AI boom.

For instant reaction and analysis, hosts Carol Massar and Tim Stenovec speak with:
Bloomberg Intelligence Senior Technology Analyst Anurag Rana
Bloomberg Intelligence Senior Analyst for E-commerce & Athleisure Poonam Goyal

Amazon.com dropped in late trading after projecting weaker-than-expected operating income and trailing the sales growth of its cloud rivals, leaving investors searching for signs that the company&rsquo;s huge investments in artificial intelligence are paying off. Operating profit will be $15.5 billion to $20.5 billion in the period ending in September, compared with an average estimate of $19.4 billion. Sales will be $174 billion to $179.5 billion, the company said Thursday in a&nbsp;statement. Analysts, on average, expected $173.2 billion. Chief Executive Officer&nbsp;Andy Jassy&nbsp;is engaged in an AI infrastructure arms race with Microsoft Corp. and Alphabet Inc. that requires heavy spending on data centers. Both of those rivals earlier reported&nbsp;strong earnings&nbsp;showing they are benefiting from the AI boom. For instant reaction and analysis, hosts Carol Massar and Tim Stenovec speak with:
<ul>
<li>Bloomberg Intelligence Senior Technology Analyst Anurag Rana</li>
<li>Bloomberg Intelligence Senior Analyst for E-commerce &amp; Athleisure Poonam Goyal</li>
</ul>

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Listen for reporting from the magazine that helps global leaders stay ahead. Hosts Carol Massar and Tim Stenovec bring you insight on the people, companies and trends shaping today's complex economy.&nbsp; You can watch and listen to Businessweek LIVE on YouTube, weekdays from 2PM to 5PM ET: <a href="http://bit.ly/3vTiACF">http://bit.ly/3vTiACF</a>.&nbsp;

Carol Massar and Tim Stenovec bring together the latest news from the world of business and finance and the interesting stories of global technology, politics, economics and more by harnessing the power of Bloomberg Businessweek reporters and editors.

Bloomberg Businessweek

Instant Reaction: Amazon Falls After Earnings, Cloud Growth Spooks Investors

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