(Bloomberg) — Amazon.com Inc., having reported strong quarterly sales in its cloud-computing division, jolted investors when executives revealed that revenue growth in the unit slowed so far in April. The shares erased a jump of almost 12%.
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Amazon Web Services sales rose 16% to $21.4 billion in the three-month period ended March 31, more than Wall Street projected, although revenue growth at the cloud unit declined for the fifth straight quarter. Some analysts have speculated that a slowdown in corporate technology spending could push the cloud unit’s growth rates to single digits later this year.
On the conference call after the results were released, executives said AWS revenue growth rates in April are running about 500 basis points lower than the cloud unit’s first-quarter pace.
The shares, which reached a high of $123, gave up all of those gains after the comments, declining to a low of $107.25. The stock closed at $109.82 in New York and had gained 31% this year through Thursday.
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