Amazon AWS Growth Fails to Impress Bearish Investor

Amazon's AWS segment saw its fastest revenue growth in 18 quarters, increasing by 36.7% year-over-year to $42.2 billion in Q2.

The company's operating income from the segment was $16.6 billion, a significant increase from $10.2 billion in the same quarter last year.

Despite these impressive numbers, investor Elina Selianska is bearish on Amazon stock, citing concerns over an impending oversupply of cloud computing that could lead to deflationary pricing and harm AWS margins.

Selianska argues that as demand continues to outpace supply, the capacity deficit will eventually be eliminated, causing compute to become a regular commodity like memory or optical fiber.