When the (COVID-19) pandemic hit three years ago, Amazon was one of the few businesses that thrived. Customers flocked to the online commerce site amid global lockdowns. But even when those lockdowns eventually lifted and Amazon’s sales slowed as people returned to stores, the company could still count on its massive cash cow: Amazon Web Services.
Now even the lucrative cloud services business is feeling pressure.
Companies are trimming their expenses amid concerns about high inflation and fears that a recession might be around the corner. And many of them are being more cautious about their cloud costs, leading to a slowdown in one of Amazon’s profitable businesses. The tech giant’s first quarter earnings report showed its cloud unit generated $21.4 billion and was growing at 16 percent in the first three months of this year — much slower than the 37 percent growth rate a year prior.
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