peepzy
11-02 00:44

$Amazon.com(AMZN)$  There was another reason the post-earnings drop got rejected and the stock rallied. The 39% growth number was a bit lower than the whisper number around 42%, but Amazon recorded about $2 billion more in advance payments from customers this quarter. That's money customers paid ahead of time for future cloud capacity that isn't fully ready yet. There's a post on X with the evidence, but do your own research and double check.

When you count those advance payments, the underlying demand looks stronger, more like 45-46% growth. That should show up down the road once capacity is available and the customers waiting in line get served.

Jassy made a point to say they add new capacity in uneven amounts each quarter, and they're still expecting the cloud business to grow more than 40% a year in 2027 and 2028. The big advance payments suggest customers are lining up for capacity that's coming soon.

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