From Barchart:



Amazon, with a market capitalization of $1.6 trillion and $554 billion in net revenue, is well-known for its e-commerce operations. However, Amazon Web Services (AWS) is also a major player, serving well-known enterprises with off-premises cloud services. AWS is a leader in the cloud services market, with a commanding 32% market share. AWS’s segment generated annualized revenue of $92.4 billion in the most recent quarter, making it a potential entity worth as much as $550 billion. The company’s growth potential and profitability, as well as its leadership in artificial intelligence, suggest that Amazon may be undervalued as a business despite its soaring stock price. AWS is also shaping up to be a leader in artificial intelligence (AI). Additionally, comparisons to other tech companies’ valuation multiples also suggest that a valuation of $550 billion for AWS might be conservative. This article suggests that Amazon remains a great stock to buy and hold for long-term investors.



Original: This Phenomenal Segment Could Be Worth $550 Billion to Amazon