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Amazon stock sinks after AWS growth warning erases post-earnings rally

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Amazon stock sinks after its warning on AWS growth erases a post-earnings rally

's stock price fell in Friday's premarket after a gloomy forecast about future growth in its cloud division wiped out an earlier post-earnings rally.

But shares slumped during a post-earnings conference call where executives warned of a likely slowdown in revenue growth at Amazon Web Services. "As expected, customers continue to evaluate ways to optimize their cloud spending in response to these tough economic conditions in the first quarter," CFO Brian Olsavsky told analysts.

Both Olsavsky and CEO Andy Jassy said their long-term growth outlook for AWS remains strong – but that failed to reassure investors.

 

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