From Nasdaq: 2024-11-16 03:30:00

Amazon’s e-commerce business, though massive, has thin margins. The real profit driver is Amazon Web Services (AWS), with $27.5 billion in sales last quarter, contributing 17% of total revenue. AWS boasts a 38.1% operating margin, fueling Amazon’s 56% increase in operating income to $17.4 billion, with $3.5 billion from AWS alone.

AWS is crucial for Amazon’s future growth, dominating the cloud computing market. Analysts predict the global cloud computing market will reach $2.4 trillion by 2030. With AWS leading the way, Amazon’s potential for profit growth is immense, overshadowing e-commerce operations.

Despite antitrust concerns, Amazon’s stock has risen 35% this year. With a forward P/E ratio of 34, lower than historical averages, now could be a good time to invest. AWS’s strong margins and growth potential make Amazon a growth beast, setting it up for long-term success in the cloud computing market.



Read more at Nasdaq: Amazon Is an E-Commerce Beast, but This Much Smaller Segment Makes Up 60% of Its Operating Profit