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Amazon Web Services (AMZN +3.6%) generated $2B in 2012 sales and will pull in $3.8B in 2013,...

Amazon Web Services (AMZN +3.6%) generated $2B in 2012 sales and will pull in $3.8B in 2013, estimates Macquarie's Ben Schachter. Others have pegged AWS' 2012 revenue at $1.5B-$2B (Amazon, in usual form, doesn't give any numbers). Schachter, who sees AWS' sales growing to $6.2B in 2014 and $8.8B in 2015 as it starts reeling in large enterprises, thinks the business would be worth anywhere from $19B-$30B ($41-$66/share) as a standalone company. (more) (Morgan Stanley upgrade)
Comments (8)
  • gensearch2
    , contributor
    Comments (1459) | Send Message
     
    If Amazon gave out numbers, the whole scam would be blown.
    7 Jan 2013, 06:30 PM Reply Like
  • sheeple2012
    , contributor
    Comments (203) | Send Message
     
    And as they keep cutting prices the profits approach zero... how much is it worth then >?
    7 Jan 2013, 07:01 PM Reply Like
  • jpintoctr
    , contributor
    Comments (431) | Send Message
     
    I am surprised that a public company release "platitudes" or geralizations when it should be more transparent. Is really the Fire generating sales, how many are sold and many unanswered basic questions. I wonder why analysts have been giving thumbs up to a clearly overvalue company. As in the 90s dot com this look like irrational exuberance
    7 Jan 2013, 07:21 PM Reply Like
  • BIG_BEN
    , contributor
    Comments (155) | Send Message
     
    Yeah I don't understand. There are plenty of competitors in the same price bracket without all the outages. There is little that makes AWS unique. Microsoft has Azure now. Dell is getting in to the cloud business. Also Joyent, Rackspace, Google, ... Cloud will become a race to the bottom commodity like physical servers were in the past. The management tools are finally effective enough to manage workloads seamlessly between public and private cloud infrastructures so that trend will only accelerate. Cloud management software and hardware vendors seems like a better investment play.
    7 Jan 2013, 07:24 PM Reply Like
  • Timothy Phillips
    , contributor
    Comments (434) | Send Message
     
    I have similar numbers in my model, but AWS even if they are able to achieve this will be well under 10% of revs with shrinking margins. By the end of 2014 the cloud will begin to get commoditized as it is a business that just requires some capital and reasonable engineering in designing the servers/farms. It will make very impact on profits.
    7 Jan 2013, 08:33 PM Reply Like
  • pman6
    , contributor
    Comments (270) | Send Message
     
    First company to reach 6000 P/E ?
    8 Jan 2013, 01:20 AM Reply Like
  • divinecomedy
    , contributor
    Comments (466) | Send Message
     
    Amen, that's all Amazon is really capable of really. The lesson from this company is really: if you have a ponzi, make sure you are backed by the whole street.
    8 Jan 2013, 05:11 AM Reply Like
  • Timothy Phillips
    , contributor
    Comments (434) | Send Message
     
    They do post numbers. The "Other" segment in the segment breakout table is largely AWS. That category will be about $2.5B or so in 2012, and is probably 80% AWS. That places it at 3-4% of the company and margins are shrinking due to significant price drops and items like depreciation growth, etc... (they just dropped prices 15% due to Google comp). I used to sell semi's into Google could operation, and they are quite good at this - Amazon has a very lean and mean competitor there.
    8 Jan 2013, 08:49 AM Reply Like
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