With AI boosting overall cloud demand, the perception that Amazon Web Services, or AWS, is losing market share to Microsoft and Google has weighed on Amazon stock, the William Blair analysts said Tuesday. Amazon stock is ahead just 3% year-to-date, significantly underperforming the S&P 500.

Microsoft services including Outlook, Minecraft and Xbox Cloud Gaming experienced widespread outages Tuesday, disrupting access for millions of users worldwide. The company said it was investigating the cause of the outage, which began early in the day and affected sign-ins and online gameplay across multiple platforms.

Analysts expect steady gains for Amazon, Apple, and Microsoft in Q3, driven by cloud, advertising, and retail performance. Price targets range from $280 to $625.

Investors were likely pleased with a re-acceleration in Amazon's closely watched cloud computing unit, which reported $33 billion in sales, up 20% year-over-year and topping analyst estimates.