The three big cloud providers curbed their capital spending in the second quarter of 2022, showing that the booming cloud business may not be immune to a slowing economy, the Wall Street Journal reported Aug. 2.
Capital expenditures for Amazon, Microsoft and Google grew by just 12 percent in the June quarter, compared to 49 percent in the same quarter last year and 30 percent in the first quarter of 2022, according to the report.
Combined cloud revenue for the three tech behemoths also slowed for the third straight quarter, the newspaper reported July 25.
Morgan Stanley analyst Erik Woodring said the cloud giants "may be entering a digestion period after three consecutive years of accelerating cloud capex [capital expenditure] growth," according to the Journal.