With the month of October being a volatile one amid third-quarter earnings, Amazon’s results were especially important given the sell-offs occurring especially within the technology sector. If the after hours slide are an indication of Friday’s market session after the Dow Jones Industrial Average just posted a 400-point gain today, then the major indexes may be serving up another day of volatility in the red.
Related: Leveraged Tech ETF Takes Off as Dow Recovers
Stiff Cloud Competition
In the second quarter, Amazon delivered better-than-expected earnings of $5.07 earnings pre share as opposed to the consensus estimates of $2.50 EPS, attributing much of its growth to its high-margin business operations, such as its cloud computing service.
However, Canadian businessman and television personality Kevin O’Leary was quick to pinpoint that Amazon will face stiff competition moving forward as other tech companies enter the cloud computing space or enhance their existing services.
“There’s a lot of competition coming into cloud services and AI (artificial intelligence) and all kinds of support,” said O’Leary. “In the same way we got euphoric about Facebook, you have to come in with some caution to the fact they’re not the only player in town providing these services.
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