AWS didn’t see the same growth acceleration as its cloud rivals, raising questions about the returns on Amazon’s high AI spending.

Amazon's stock sank on Thursday afternoon, weighed down by mixed guidance and AI competition, though the company beat Q2 earnings expectations.

With headcount inching up to 1.55 million, CEO Andy Jassy said "AI progress across the board continues to improve our customer experiences, speed of innovation, operational efficiency, and business growth,

Shares in the tech giant jumped after earnings came in above estimates. CEO Satya Nadella said that cloud and AI continue to drive the company's growth. Microsoft stock surged in after-hours trading on Wednesday after the tech giant beat analysts' expectations for another straight quarter.

Microsoft posted its fiscal fourth-quarter results after Wednesday's closing bell. Investors will be focused on cloud growth, spending plans and monetization of AI tools like Copilot.