With revenue growth of nearly 37% and a year-over-year improvement in operating income of more than 63%, there’s no denying Amazon’s (NASDAQ: AMZN) cloud computing arm experienced a fantastic second quarter.
Shareholders have every reason to be happy
Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) investors, however, have even more reason to celebrate. The company’s Google Cloud business grew its top line by nearly 82%, resulting in operating income growth of over 200%. There’s an important footnote to these percentage-based comparisons: Google’s cloud computing business started from a markedly smaller baseline, making it easier for Alphabet to produce a relatively bigger leap.
There’s another footnote to add to the numbers, though: Google Cloud is gaining market share, while Amazon is losing it. Moving in different directions The chart tells the tale. Data collected by Synergy Research Group indicates Amazon Web Services (AWS) reported 28% of Q2’s worldwide total public cloud revenue, extending a downtrend that’s been in place since 2022; Microsoft’s share peaked in early 2024 and stands at 20%, knocking on the door of new multiyear lows.