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By Deborah Mary Sophia

Feb 5 (Reuters) - The pressure is on Amazon.com to provide on lofty expectations for cloud computing in its fourth-quarter results on Thursday, after Microsoft and Google's lackluster reports jolted financier faith in Big Tech's billion-dollar investments in AI.

Shares of significant tech business surged in the previous two years on the belief that massive datacenter needs for artificial-intelligence innovations would power financial investment for setiathome.berkeley.edu many years.

But that was before Chinese startup DeepSeek said it had attained AI developments at a portion of the cost, precipitating a selloff in innovation stocks that some state was past due.

Still, Amazon may be much better located than rivals to take advantage of less expensive AI, experts state, due to its massive cloud business and lower exposure to expensive large-language models that power apps like ChatGPT.

Amazon Web Services, the world's biggest cloud companies, is anticipated to post its strongest revenue boost in 8 quarters at 19.3%, according to data put together by LSEG.

But Microsoft and Meta were both forced to safeguard their AI budget last week, and forum.tinycircuits.com shares of Google-parent Alphabet plunged 8% on Wednesday after it said it would be investing more on capex than analysts prepared for.

"Microsoft and Google results have put a lot more of a microscope on Amazon's cloud growth," said Dave Wagner, portfolio manager at Aptus Capital Advisors, which holds shares in all 3 technology business.

"But if Amazon can squash it on their cloud numbers, the marketplace's going to definitely enjoy that report."

The business was the first huge cloud service provider to accept DeepSeek's AI models last month and has said its capital spending, mainly on AI, would be more than the $75 billion it approximated for 2024.

Slowing growth at Microsoft Azure and Google Cloud, the second- and third-biggest cloud players, has stimulated some care from analysts about AWS' efficiency.

"Microsoft said it was capacity constrained, Google said it was capability constrained. More than likely, Amazon is going to say it might have been capability constrained also which's why its development rate isn't quite approximately what the marketplace might have anticipated," said Bob O'Donnell, primary analyst at TECHnalysis Research.

Some experts see the weak point at competitors as an indication that Amazon may have caught up in the AI race through efforts including doubling its financial investment in Anthropic and offering a broad selection of AI models on its cloud platform.

"We actually believe that AWS is regaining share. It had actually been growing a lot slower than Microsoft Azure and Google Cloud for a time period, however we believe that as Amazon has actually captured up on its AI offering, it may have less of a deceleration than Azure and Google Cloud," D.A. Davidson analyst Gil Luria said.

The business has maintained a greater appraisal than a few of its competitors, with a current forward price-to-earnings ratio of almost 39. Microsoft's forward P/E is 29 and Alphabet's 22.4, according to LSEG data.

RETAIL STRENGTH

The e-commerce giant's results are likewise most likely to gain from a healthy vacation shopping season, oke.zone after competing retailers such as Target and a slew of clothing companies provided rosy projections over the previous month.

Amazon's North American sales for forum.batman.gainedge.org the fourth quarter are forecasted to increase 9% year-on-year. After a downturn in online sales development earlier this year, experts state Amazon is primed for a in the retail organization, setiathome.berkeley.edu which has influenced its post-earnings share movements over the previous two quarters.

Data from Adobe Analytics showed U.S. consumers spent lavishly online in between November and December 2024, investing more than $240 billion, drawn by deep discount rates on whatever from TVs to toys.

The holiday costs development rate of 8.7% nearly doubled from the 4.9% recorded in 2023, the information showed.

Amazon has actually likewise tried to improve delivery times and broadened product merchandise, including its concentrate on grocery, drug store and fashion - relocations experts say will help move development.

"Most signs are that it was a good quarter. There was a good holiday for the consumer and so there's plenty of factor to believe Amazon will have done well because side of business," Luria said.

(Reporting by Deborah Sophia in Bengaluru; Editing by Pooja Desai)