Amazon, Google and Microsoft all smashed Wall Street estimates this week with strong quarterly earnings that showed all three tech giants continue to gain momentum and reap steady profits from their cloud computing businesses.
The better-than-expected earnings have propelled the stocks of all three companies. As of Friday, Amazon’s share price was up 13 percent, Google’s stock was teetering all day between record highs of $1,055 to $1,045 a share and Microsoft shares jumped to $84 a share, up from around $79.
There were also some important new cloud numbers to dive into from the earnings calls: Amazon appears poised to hit $18 billion in cloud revenue this year, continuing to make it the single most profitable segment in Amazon’s business. Google’s CEO Sundar Pichai says cloud is now a top-three priority for the company and plans to continue expanding the segment. And Microsoft CEO Satya Nadella, who has used the cloud to move away from older slower growing businesses, says the company is “outpacing their goals set two years ago” and predicted it would hit $20 billion in cloud sales by 2018.
- $4.6 billion, cloud revenue for the for quarter, up 42 percent year over year
- $12.3 billion, cloud revenue for the first nine months of the year, up from $8.6 billion a year go
- $18 billion, cloud revenue projection for 2017, up from $12.2 billion in 2016
- Major enterprise wins during the quarter include: Hulu, Toyota Racing Development and FICO (Amazon was also named General Electric’s preferred cloud provider)
- $3.4 billion, revenue from the segment that includes Cloud, Play and hardware, a 40 percent year-over-year uptick (Google does not break out cloud revenue specifically)
- $870 million, estimated cloud revenue, according to research firm Canalys
- Major enterprise wins: Kohl’s and PayPal (note: in the previous quarter, Google reported more progress on the enterprise front, saying it had more than tripled the number of cloud deals worth more than $500,000)
- The bulk of Google’s new hires in the third quarter were in cloud for both engineering and sales roles “outpacing their goals set two years ago”
- 90 percent year-over year growth for Azure (Like Google, Microsoft does specific revenue figures for its chief cloud offering, Azure).
- $2 billion, estimated cloud revenue, according to research firm Canalys
- $5 billion, revenue for Microsoft company’s overall cloud business
- Meanwhile, the company’s overall commercial cloud business, which includes not just Azure but its Office 365 cloud suite and other cloud services for business
- $20 billion, anticipated annualized revenue run rate for cloud (this projection was based on the best month in the most recent quarter and multiplied by 12)
- Major enterprise win: Costco