Andy Jassy projects profit that underwhelms on expense of AI race

Amazon projected operating income in the current quarter that fell short of analysts’ estimates, raising concerns among investors that the technology giant is spending too much to keep up with competitors in the race for artificial intelligence.

Operating profit will be between $US15.5 billion ($24.1 billion) and $US20.5 billion in the period ending in September, compared with an average estimate of $US19.4 billion. Sales will be $US174 billion to $US179.5 billion, the company said in a statement. Analysts, on average, expected $US173.2 billion.

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Bloomberg