Why Amazon Stock Dropped 11% Last Month

Shares of Amazon (NASDAQ: AMZN) dropped 10.7% in February, according to data provided by S&P Global Market Intelligence. The company reported financial results for 2024 on Feb. 6 which handily beat expectations. But investors were concerned about a $100 billion expense coming in the near future.For context, Amazon just capped off a historic year. The company's operating income came in at a record $68.6 billion, which was up 86% year over year and was almost as much as the previous three years combined. And the star of the show was the cloud-computing platform Amazon Web Services (AWS). AWS supplied more than half of the year's operating income with its net sales growing by 19% to over $100 billion.Don't misunderstand: Amazon's AWS is one of the most important cloud-computing platforms, and its growth has been stellar for years. But more recently, growth in the industry is getting a boost from interest in artificial intelligence (AI). In short, enterprises are turning to AWS to experiment with and ultimately adopt AI applications.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool