Microsoft's Commercial Backlog Soars as Amazon's Cloud Growth Accelerates
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy AMZN?
Source: NASDAQ.COM
- Commercial Backlog Surge: Microsoft's commercial remaining performance obligations (RPO) reached $625 billion in fiscal Q2 2026, reflecting a 110% year-over-year increase driven by strong AI demand, although 45% of this backlog is concentrated with a single customer, OpenAI, posing a significant risk.
- Capital Expenditure Spike: Microsoft reported capital expenditures of $37.5 billion in Q2, a 66% year-over-year increase, which could impact future profit margins, raising concerns for investors about long-term profitability.
- Accelerating Cloud Growth: Amazon's cloud computing segment, AWS, saw a 24% year-over-year revenue increase in Q4, reaching $35.6 billion, with operating income rising from $21.2 billion to $25 billion, indicating robust market demand and financial performance.
- Long-term Investment Edge: Amazon plans to invest approximately $200 billion in capital expenditures in 2026, and its aggressive scaling of custom silicon is expected to lower customer costs, enhancing its competitive position in the AI hardware market.
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Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise
44 Analyst Rating
41 Buy
3 Hold
0 Sell
Strong Buy
Current: 212.650
Low
175.00
Averages
280.01
High
325.00
Current: 212.650
Low
175.00
Averages
280.01
High
325.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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