Amazon’s cloud juggernaut could finally be slowing down

Investors were pleasantly surprised when Amazon started breaking out revenues and operating profit from its cloud business, Amazon Web Services, last year. The business was bigger than most investors expected, and turned an operating profit.

But at least one analyst firm thinks AWS might finally be slowing down.

This chart from Credit Suisse shows that analysts there expect AWS to show only 45% revenue growth from a year ago, the lowest growth rate since Q3 2014. The analysts also note that that dip in growth in 2014 came because AWS “materially cut prices” in Q2 of that year, and the comparables didn’t pick up until those price cuts had worked through the year-ago cycle.

COTD 041916

Disclosure: Jeff Bezos is an investor in Business Insider through hispersonal investment company Bezos Expeditions.

NOW WATCH: JOHN MCAFEE: Why downloading free apps is dangerous