Amazon Faces Stiff Competition for Its Cloud Services Businesses, Says Analyst
Amazon faces challenges ahead as it will need to spend more to fend off competition on two fronts, says a Moody's analyst.
Amazon (AMZN) - Get Report must continue to invest to stay ahead of competitors for both its online business and its cloud services business, according to Charlie O'Shea, an analyst at Moody's. Amazon's earnings missed expectations, which weighed on its stock Friday. O'Shea says Amazon is a hard company to benchmark on a quarterly basis, since it is investing for the future. But he added that Amazon's competitors are upping their investments too. O'Shea pointed out that when it comes to cloud services, both Microsoft (MSFT) - Get Report and Google (GOOGL) - Get Report are better capitalized. TheStreet's Rhonda Schaffler has details from Wall Street.
