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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 uninspired reports jolted financier faith in Big Tech's billion-dollar investments in AI.

Shares of major tech companies surged in the previous 2 years on the belief that enormous datacenter needs for artificial-intelligence technologies would power financial investment for larsaluarna.se several years.

But that was before Chinese startup DeepSeek said it had attained AI breakthroughs at a portion of the cost, speeding up a selloff in innovation stocks that some say was overdue.

Still, Amazon might be much better located than rivals to profit from less expensive AI, experts say, due to its enormous cloud company and lower direct exposure to pricey large-language designs that power apps like ChatGPT.

Amazon Web Services, the world's largest cloud companies, forum.pinoo.com.tr is expected to post its greatest earnings boost in eight quarters at 19.3%, according to information put together by LSEG.

But Microsoft and Meta were both forced to protect their AI budget recently, and shares of Google-parent Alphabet dropped 8% on Wednesday after it said it would be investing more on capex than experts expected.

"Microsoft and Google results have actually put even more of a microscopic lense on Amazon's cloud development," said Dave Wagner, portfolio manager at Aptus Capital Advisors, which holds shares in all three innovation companies.

"But if Amazon can crush it on their cloud numbers, the market's going to absolutely love that report."

The business was the first big cloud service provider to welcome DeepSeek's AI designs last month and has said its capital costs, mainly on AI, would be more than the $75 billion it estimated for 2024.

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

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

Some experts see the weakness at rivals as an indication that Amazon might have up in the AI race through efforts consisting of doubling its investment in Anthropic and providing a broad selection of AI models on its cloud platform.

"We in fact think that AWS is regaining share. It had actually been growing a lot slower than Microsoft Azure and Google Cloud for a time period, but 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 expert Gil Luria said.

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

RETAIL STRENGTH

The e-commerce giant's results are also most likely to gain from a healthy holiday shopping season, after competing retailers such as Target and a multitude of apparel companies issued rosy projections over the past month.

Amazon's North American sales for the 4th quarter are forecasted to rise 9% year-on-year. After a downturn in online sales growth previously this year, experts state Amazon is primed for a rebound in the retail organization, which has affected its post-earnings share motions over the previous two quarters.

Data from Adobe Analytics revealed U.S. buyers spent lavishly online between November and December 2024, investing more than $240 billion, drawn by deep discounts on everything from TVs to toys.

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

Amazon has also attempted to improve shipment times and expanded item merchandise, including its focus on grocery, pharmacy and style - relocations experts say will assist propel development.

"Most indicators are that it was a great quarter. There was a great holiday for the consumer therefore there's a lot of factor to believe Amazon will have succeeded in that side of business," Luria said.

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