Amazon's potential growth driven by AWS could propel stock to $5 trillion valuation

From Nasdaq: 2025-05-28 07:00:00

World’s largest companies are near the $3 trillion mark, but a $5 trillion company is on the horizon. Amazon (NASDAQ: AMZN) is a top contender, with its e-commerce and AWS segments driving growth. AWS, Amazon’s cloud computing division, accounts for 63% of its total operating profit and is key to reaching the $5 trillion valuation.

Amazon’s online stores made $57.4 billion in Q1, but with slim margins. AWS, with a 39% operating margin, stands out as a profit driver, despite accounting for only 19% of sales. Grand View Research estimates the global cloud computing market to reach $2.4 trillion by 2030, benefiting AWS and potentially propelling Amazon to $5 trillion.

AWS’s revenue growth of 17% last quarter positions it to reach $246 billion in five years. With a 39% operating margin, AWS could generate $97 billion in operating profits, contributing significantly to Amazon’s valuation. Despite slower growth in online sales, AWS’s potential growth makes Amazon a strong investment for the future. 1. The stock market surged today, with the Dow Jones Industrial Average closing up 500 points. This comes after positive earnings reports from major companies like Apple and Amazon, boosting investor confidence.

2. A new study shows that the COVID-19 vaccine is highly effective in preventing severe illness and hospitalization. Data from the CDC reveals that over 90% of hospitalizations are among unvaccinated individuals.

3. In international news, tensions are rising between Russia and Ukraine as Russia amasses troops near the border. The U.S. and European countries have condemned Russia’s actions and called for de-escalation to prevent a potential conflict.

4. Climate change continues to impact communities worldwide, with record-breaking temperatures and wildfires in the western United States. Scientists warn that urgent action is needed to address the root causes of climate change and prevent further environmental damage.



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