Amazon a bright spot in tech earnings giving investors what they wanted but some major questions remain in the corridors ahead

The three that Amazon needs to answer

It's Friday October 27th. Welcome to the Tech Check

podcast. I'm dear Trebosa. And I'm Mark Gilbert. Today our story, Amazon

earnings. D an interesting quarter and a lot to dive into. I think first what people were

focused on cloud. Cloud growth was good and that's really issue number one.

It was I don't know if I'd use the word good. It was okay 12% this quarter.

12% last quarter. But it's really important because this is what pays for everything else at

Amazon. So actually quick note on that operating margin

for the cloud business more than 30%.

That was a big uptick.

But it's also, of course, cloud is where they're focusing

all of their generative AI efforts.

So I would also argue there was a little bit of mixed messaging.

The CEO Andy Jassie, he did provide some hope on the analyst call.

He said that more deals are being sighed, and you're going to see that in the current quarter.

But he even, I mean he even provided some timing specificity. He said they'd signed some deals in September that were actually

going to show up in October because that's when they would take effect.

So we said that there's some really big deals coming down the pipeline.

So I guess that might imply that growth has bottomed out, but then I go back to what Amazon CFO Brian Elsowski said to me right after the earnings

came out I have a media call every quarter with the CFO and I knew what my question was

going to be this quarter I knew that it was all about Cloud.

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