Ahead Of Amazon's Earnings: I've Looked At Clouds From Both Sides Forthwith (Amzn; Goog)

One quick annotation on Facebook's horrendous guidance.
Good.
I know it whacks the stock together with therefore the indices of which it is a part, S&P 500, Nasdaq together with Nasdaq 100; throwing a combat of delay inwards the march higher but I tin position upwards alongside a slight alter of schedule inwards the Climateer innovation for basis domination. Here's the weighting of the move yesteryear nine stocks inwards the S&P (10 symbols), number iii reports today:

Rank	Company	Symbol	Weight
1	Apple Inc.	AAPL	3.964014
2	Microsoft Corporation	MSFT	3.455751
3	Amazon.com Inc.	AMZN	3.077697
4	Facebook Inc. Class A	FB	2.151135
5	JPMorgan Chase & Co.	JPM	1.623780
6	Berkshire Hathaway Inc. Class B	BRK.B	1.595816
7	Alphabet Inc. Class C	GOOG	1.582882
8	Alphabet Inc. Class A	GOOGL	1.569816
9	Exxon Mobil Corporation	XOM	1.468268
10	Johnson & Johnson	JNJ	1.449517

And because Amazon's cloud business, AWS, is the net generator that AMZN uses every bit the starting indicate when deciding how much net to demo each quarter

(it's non every bit bad every bit GE's "beat yesteryear a penny" accounting inwards the '90's but all the same something to behold)

we'll took at what Google had to state recently.

Bows together with flows of angel hair

And H2O ice cream castles inwards the air...

First up, Business Insider

Sundar Pichai strayed from Google's typical rhetoric every bit he touted the growth of Google Cloud

• Google has touted the growth of Google Cloud Platform for years, but on Mon CEO Sundar Pichai acknowledged that rivals are also faring well.
• That didn't halt him from taking a veiled shot at competitors yesteryear proverb that companies considering cloud adoption human face upwards a existent danger of getting "on the incorrect platform."
• Analyst Dan Ives said Google has footling adventure of "knocking off" Amazon or Microsoft but the cloud represents a growth surface area for the company.

For years, Google managers lead hold talked upwards the growth of the company's cloud services together with tried to undermine the character grade of their rivals' offerings.

Nearly every fourth dimension Diane Greene, Google Cloud Platform's CEO, speaks publicly she trash talks Amazon together with Microsoft's clouds. But on Monday, CEO Sundar Pichai sounded a real dissimilar annotation — if alone briefly.

Alphabet Inc., Google's parent company, issued the company's second-quarter earnings written report on Mon together with afterwards, Pichai took questions on a conference telephone telephone alongside analysts.

Mark Mahaney, managing manager at RBC Capital noted that spell Google Cloud Platform (GCP) appears to move growing, together with so does Amazon's AWS together with Microsoft's Azure. He wanted to know how Pichai explained that.

Speaking on the black earlier the outset of "Next 2018, " GCP's annual showcase for cloud services together with products, Pichai conceded that all the players inwards the segment are faring good — non merely Google.
"That's why it feels far from a zero-sum game," Pichai said. "All the major players are definitely seeing traction."

That's non Google's typical narrative on the dependent land together with the argue is obvious. The disputation raises awkward questions. Are GCP's concern gains the trial of its superior expertise together with technology scientific discipline every bit managers lead hold suggested, or are all the players benefitting from a deluge of coin flowing into the sector every bit cloud adoption inwards the concern basis expands?

Cloud computing is supposed to move i of the side yesteryear side hot growth areas for Google together with management continues to devote to a greater extent than resources to developing the business. The companionship doesn't interruption out GCP's fiscal numbers but rolls them into its "other" category, which generated $4.425 billion inwards the minute quarter, slightly higher upwards analyst expectations of $4.4 billion. So, the stakes are high .

Back on the offensive
Maybe that's why it didn't lead hold long for Picahi to move dorsum on the offensive. In his response to Mahaney, he cautioned that though much of the sector is growing, there's all the same a existent danger for cloud customers to acquire "on the incorrect platform." The CEO also said he believes to a greater extent than businesses volition laid about to trust their information to multiple platforms....MORE

From The Register:

Google answers 'Why Google Cloud?' alongside services together with spectacle
Cloud Services Platform debuts, mixing containers, monitoring, AI, management, etc

...Diane Greene, CEO of Google's cloud business, was delivered to the phase via a rotating booth, rather to a greater extent than theatricality than the park executive walk-on.

Her mission was to reply the question, "Why Google Cloud?"

For those inwards the audience who looked over their shoulders, Greene's remarks were slow to anticipate, thank y'all to visible teleprompter screens suspended from the middle of the hall. Consider it a pace toward transparency.

Why Google Cloud? Greene brought Target CIO Mike McNamara on phase to reply that question. The retail giant has move a Google Cloud Platform (GCP) customer....$2.4 billion purchase of the Chelsea Market edifice inwards New York. The saltation from $2.8 billion inwards uppercase expenditures a yr agone to $5.5 billion this quarter comes from increased spending on information pump construction, facilities together with production equipment to back upwards the Google Cloud business, add together capacity to handgrip to a greater extent than YouTube subscribers together with investments inwards machine learning, CFO Ruth Porat said during a telephone telephone alongside investors.

The ascent inwards spending on uppercase projects didn’t halt the tech giant from posting huge numbers for the quarter, beating analyst expectations together with sending its stock soaring inwards after-hours trading. However, the massive $5 billion fine (€4.3 billion Euro) levied yesteryear the European Union for forcing manufacturers to pre-install Google Search together with other apps on Android devices was a major drag on the company’s bottom delineate inwards the minute quarter....MORE

Finally, also from GeekWire (July 10), something that may non acquire every bit much play but which NVIDIA is keeping rail of

Amazon Web Services’ Peter DeSantis sheds to a greater extent than lite on the cloud giant’s custom chip strategy

Evolving cloud workloads are going to require evolving hardware strategies to anticipate those futurity demands, together with Amazon Web Services continues to lean on its 2015 acquisition of Annapurna Labs to practice custom chips that volition give customers a broad arrive at of surgery options.

AWS vice president of infrastructure together with client back upwards Peter DeSantis unopen out the 2018 GeekWire Cloud Tech Summit alongside a give-and-take of the custom chips that AWS is developing that deliver the specific type of horsepower needed to address challenging workloads that are moving onto the cloud, such every bit drug discovery, fossil oil together with gas exploration, together with artificial intelligence.
“This mightiness to move all the agency — to putting your infrastructure into custom pattern — has genuinely allowed us to lead hold a bunch of client requirements that excite us together with invest inwards actually large efforts to deliver this value,” DeSantis said.

During the early on days of cloud computing, customers were content to lead hold familiar standard-issue hardware at their fingertips through cloud providers similar AWS together with Microsoft Azure. In essence, they were edifice software the same agency they ever had; they were merely running it on general-purpose Intel processors together with virtual machines on servers managed yesteryear mortal else, rather than setting upwards racks together with racks of their ain equipment....MORE

We'll move dorsum alongside to a greater extent than after the numbers come upwards out this afternoon.
The consensus EPS justice is $2.48, upwards from forty cents concluding year.