Let's break down what happened with Amazon first. The company reported a profit loss for the first time in eight quarters or two years.
Amazon company reported second-quarter earnings-per-share of $5.22, falling short of expectations of $5.57 a share. Revenue came in at $63.4 billion, beating expectations of $62.5 billion.
And Amazon Web Services--Amazon's cloud service--reported revenues of $8.38 billion, which fell short of expectations of $8.5 billion.
And then there's Alphabet. The company reported second-quarter earnings of $14.21 a share, smashing estimates of $11.30. Revenue came in at $38.9 billion, which topped Wall Street forecasts of $38.15 billion.
And there was a little bit of a surprise when Google CEO Sundar Pichai disclosed that Google Cloud has an annual run rate of $8 billion. The metric is not one that the company normally discloses, however, the company has been talking about the Cloud Platform's progress in more qualitative terms.
So, how are the companies cloud businesses impacting their earnings?
"We're saying maybe this is becoming more of a dynamic market where there's more pricing pressures and there's more market share gains from other competitors that Amazon had dominated in the past. And maybe AWS isn't necessarily going to be the complete rock-solid foundation of Amazon EPS that it has been in the past. So I think that's what you're seeing is the worry on the cloud for Amazon and then the really strengthened cloud of Google making market share gains there," said Kevin Curran, reporter for Real Money.
More From Today's Live Show
This article has been updated to clarify that the $8 billion run rate announced by Google CEO Sundar Pichai encompasses the entirety of Google Cloud.