"Amazon ( NASDAQ:AMZN) absolutely knocked one out of the ballpark this quarterly earnings season. And while it's arguably been the most magnificent performer of big tech earnings, investors shouldn't sleep on the year-to-date laggard, as it looks to kick off its next leg higher. Undoubtedly, the third quarter results were far better than expected, thanks in part to unforeseen strength in its mature Amazon Web Services (AWS) business."
"And while the burst of cloud momentum could signal a sustained acceleration into the AI age, I think investors shouldn't forget about the consumer-facing business, as it leverages next-generation cloud technology to take on new markets. One such market that Amazon might be looking to disrupt is video games, as it looks to overhaul its Luna game-streaming service, which has been a very niche product that many Prime users may be completely unfamiliar with."
"Undoubtedly, after the wave of layoffs and closure of its game development studio behind New World, questions linger as to where Amazon goes next with gaming and whether it can be a gaming presence that can clash with the likes of Microsoft ( NASDAQ:MSFT) Xbox, which has also undergone significant shifts of late. Undoubtedly, the Xbox Game Pass subscription has been viewed by many as one of the best values in gaming, at least until the company recently hiked prices."
Amazon delivered much stronger third-quarter results than expected, driven by unforeseen strength in Amazon Web Services (AWS). Cloud momentum could signal sustained acceleration into the AI era and enable consumer-facing businesses to leverage next-generation cloud technology to enter new markets. Amazon is pursuing video games by overhauling its Luna cloud-streaming service, which remains niche among Prime users. Recent layoffs and the closure of a game development studio behind New World raise strategic questions about gaming ambitions. Competing dynamics include Microsoft's Xbox Game Pass, which recently raised prices, and uncertainty persists about Amazon's path to meaningful scale in cloud gaming.
Read at 24/7 Wall St.
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