While Amazon (AMZN) is down after hours on an earnings miss, the company's cloud computing business lived up to forecasts and extended its lead over Microsoft Corp. (MSFT) Azure and Alphabet Inc. (GOOGL) Google Cloud Platform.
Jeff Bezos said in a press release that Amazon Web Services introduced more than 400 new features and services in recent months, as second-quarter sales for the cloud business rose 42% to $4.1 billion.
Shares of Amazon.com Inc. dropped 3.2% to $1012.49 after hours, because earnings of 40 cents per share came in well below forecasts of $1.42 per share.
Amazon Web services, or AWS, is the largest of the publicly held cloud providers.
The industry-leading cloud service generated $14.5 billion in sales over the last 12 months, Amazon said. Recent customer wins include Ancestry.com, California Polytechnic State University, and BP plc (BP) , the company said. Meanwhile, NASA, the American Heart Association and Capital One Financial Corp. (COF) have signed up for AWS machine learning and artificial intelligence services.
Gauging AWS's lead is difficult, however, because rivals Microsoft and Google do not break out their cloud numbers.
Microsoft reported last Thursday that sales of its Azure cloud service grew by 97% in its fourth fiscal quarter, but did not disclose an absolute dollar figure for sales. Azure's results are included in Microsoft's intelligent cloud segment, which includes server products and enterprise services and grew 11% to $7.4 billion in the quarter.
Alphabet folds results for its Google Cloud Platform in with Google's "other revenues." The revenue grouping includes Pixel smartphones and sales from the Play app store, and expanded by 42% to $3.09 billion in the second quarter.
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