{"id":57558,"date":"2025-10-02T16:55:08","date_gmt":"2025-10-02T16:55:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/57558\/"},"modified":"2025-10-02T16:55:08","modified_gmt":"2025-10-02T16:55:08","slug":"why-amazon-amzn-may-lose-its-cloud-computing-crown","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/57558\/","title":{"rendered":"Why Amazon (AMZN) May Lose Its Cloud Computing Crown"},"content":{"rendered":"

Tech giant Amazon (AMZN)<\/a> has been a leader in cloud computing for years thanks to its Amazon Web Services (AWS) division, which has powered much of its stock growth. But now, rising competition from Microsoft (MSFT)<\/a>, Oracle (ORCL)<\/a>, and even CoreWeave (CRWV)<\/a> is making things more difficult, according to Bloomberg. Although AWS still holds the biggest slice of the cloud market, Microsoft\u2019s Azure and Google Cloud are closing in fast. Oracle is also growing and quickly becoming a serious contender. <\/p>\n

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Because AI<\/a> tools like ChatGPT need massive amounts of cloud power, demand for these services has exploded, but that\u2019s also making the race more competitive. As a result, Amazon\u2019s cloud revenue growth was slower than Microsoft\u2019s and Google\u2019s in the second quarter, which raised red flags for investors. Indeed, this shift is becoming more visible in how investors value Amazon\u2019s stock. Right now, Amazon trades at about 25 times forward earnings, which is lower than the Nasdaq 100<\/a> average of 27 times, and near its biggest-ever discount to that index. <\/p>\n

Meanwhile, Oracle trades at 40 times earnings, its highest valuation since the dot-com era, and Microsoft trades at 32 times, which is above its 10-year average. Looking further ahead, forecasts suggest that Amazon\u2019s cloud market share could shrink from nearly 35% in 2022 to under 20% by 2030, according to Bloomberg Intelligence and IDC. Interestingly, Microsoft is expected to take the top spot by 2029, and Oracle could reach 12% market share. <\/p>\n

What Is the Price Target for AMZN Stock?<\/p>\n

Turning to Wall Street, analysts have a Strong Buy consensus rating on Amazon stock based on 43 Buys assigned in the past three months. Furthermore, the average\u00a0AMZN stock price target<\/a>\u00a0of $267 per share implies 21% upside potential from current levels.<\/p>\n

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See more AMZN analyst ratings<\/a><\/p>\n

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