Amazon.com Inc.’s stock AMZN, -5.58% is on track Wednesday for its largest one-day drop in more than eight months, as Alphabet Inc.’s GOOG, -9.60% GOOGL, -9.51% cloud-computing slowdown appears to be spooking investors.
Amazon’s stock is off 5.7% in afternoon trading and on pace to log its biggest one-day percentage decline since Feb. 3, when it fell 8.4%, according to Dow Jones Market Data. Alphabet and Microsoft Corp. MSFT, +3.07% both posted results Tuesday afternoon, and “the common denominator in these two prints [was] the mention of ongoing optimizations,” Piper Sandler analyst Thomas Champion wrote in a note to clients. “Taken together, the momentum behind cost-cutting continues points to a steady-to-decelerating AWS growth print versus re-acceleration.” Amazon is due to post its own September-quarter results after the close of trading Thursday.