Amazon reported earnings Thursday afternoon in the wake of upbeat cloud results from its major rivals that suggested healthy AI demand. MarketWatch will be breaking down the results.

Amazon.com Inc. dropped after projecting weaker-than-expected operating income and trailing the sales growth of its cloud rivals, leaving investors searching for signs that the company’s huge investments in artificial intelligence are paying off.

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,