"Amazon's Earnings Reveal Untapped Opportunities Despite Potential Slowdown"

Amazon Web Services (AWS) may see a slowdown in cloud computing due to customers decreasing spending amid economic uncertainty, but analysts believe the company has a "largely untapped" $2.5T market opportunity in the public cloud and is well-positioned to benefit from the integration of artificial intelligence. Morgan Stanley analyst Brian Nowak believes AWS is "more than halfway through" cutting costs and making sure it is more efficient over the long-run, while UBS analyst Lloyd Wamsley notes that any optimization efforts are likely to end by the summer, making year-over-year comparisons easier. J.P. Morgan analyst Doug Anmuth believes AWS is poised to benefit from massive customer spend on AI for years to come.