Amazon.com, AMZN -0.34% the undisputed leader in the cloud, suddenly has a lot to prove. Indeed, at around 68 times forward earnings, Amazon’s shares look cheap against the multiple of 100 times forward earnings that the stock has averaged over the past four years, according to FactSet. Analysts expect AWS revenue to log a rise of 37% for the third quarter to $9.1 billion. Amazon still has a comfortable lead on cloud challengers including Microsoft and Google, and analysts widely expect overall cloud spending to remain resilient compared with other areas of corporate tech budgets that are getting pinched. But the company’s cloud can ill afford another slip.

Source: Wall Street Journal October 23, 2019 11:03 UTC