From Nasdaq: 2025-05-18 07:15:00

Amazon (NASDAQ: AMZN) is known for its e-commerce dominance, but the real reason to invest lies in Amazon Web Services (AWS). AWS delivers strong growth and profits, with a 39% operating margin compared to the e-commerce segment’s 6.3%. As AWS continues to drive Amazon’s success, investors should focus on this cloud computing powerhouse.

Cloud computing is experiencing rapid growth, with AWS leading the market share. Trends like AI workloads and cloud migration are fueling AWS’s expansion. The cloud computing market is projected to reach $2.3 trillion by 2030, offering significant opportunities for investors. AWS’s strength and growth potential make it a key factor in Amazon’s stock performance.

Investors should pay attention to Amazon’s operating profit growth, driven by AWS. While operating income growth has slowed slightly, it remains in double digits. With AWS contributing significantly to Amazon’s profitability, it’s a strategic focus for investors looking for long-term growth. AWS’s success underscores Amazon’s position in the evolving tech landscape.

For investors seeking high-growth opportunities, AWS and cloud computing present compelling prospects. AWS’s performance has outpaced Amazon’s e-commerce segment, highlighting its importance for the company’s future success. As cloud computing continues to expand, AWS is poised to drive Amazon’s stock performance and deliver strong returns for investors.



Read more at Nasdaq: Here’s Why Amazon Is a Brilliant Buy Now (Hint: It’s Not E-Commerce)