Entering text into the input field will update the search result below

Amazon Web Services: the 800 pound gorilla that could be worth more than $3T

Jul. 02, 2022 10:05 AM ETAmazon.com, Inc. (AMZN)GOOG, MSFT, GOOGLBy: Chris Ciaccia, SA News Editor46 Comments

Amazon (NASDAQ:AMZN) Web Services is the 800 pound gorilla when it comes to cloud computing, holding nearly 33% of the high-growth cloud infrastructure space, according to Synergy Research Group.

But with the massive Amazon (AMZN) unit continuing to grow

Recommended For You

Comments (46)

Have a tip? Submit confidentially to our News team. Found a factual error? Report here.

My only issue is are they run correctly? I think the stock would go back to ATH's with bezos returning to the helm. Once the founder leaves it usually idles.

Thoughts on this? Always sell a sell led company when founder moves on.
Cambridge STR profile picture
I am finally starting to buy AMZN shares on a recurring basis. This decade will finish with multiple multi-trillion dollar valued companies and AMZN will be one.
If it truly is worth 3T, we have some immediate anti-trust issues that ned to be addressed.
And Value for All profile picture
This is what happens when a mediocre fund manager gets years of fame and a fat retirement out of one single eye-catching prediction that turns right: everyone wanna be the next star of the circus
Amazon is a 30 trillion dollar, 8 million pound gorilla racing through a school zone, head banging to Metallica, smoking Marlboro Reds, with a Sawed Off shotgun in the passenger seat and has a taste for human flesh! Thatd be a better title.
@underscorereality long Amazon 👍😉
vireoman profile picture
@underscorereality Just don't tell me it is wearing a red MAGA cap.
Apt Learner profile picture
@vireoman It’s wearing two.
Amazon should either spin off aws or spin off the retail / e-commerce (low margin). Otherwise it’s going to be offset each other in a negative way a
TAS profile picture
@jeanjl Those new Amazon Fresh stores are superb shopping experiences. If you have not been through one, try to find one to see for yourself.
@jeanjl They will keep AWS the plan is to eat into others market share then gobble up a few that will want to sell to them gaining well over 70 % penetration . Amazon is KING at whatever they touch . The Berkshire Hathaway of the future
PS : AMAZON owns and runs over 100 other companies that are gaining presence every week so this is just a start in the company life cycle .
How do you turn $109 into $300 to $500 while enjoying your life ?
Buy AMZN stock .
@KEEPYOURMONEY we will stay with AMZN all the way with our limited income this is a no brainer.
I love it when analysts come up with numbers like $trillions as if it were confetti; $3T in today's markets that's more intense; why such dudes never pay attention to weak links in a company; isn't their job to list the pros and cons of a corporation and provide an independent opinion; how much business of AWS depends on government contracts and intelligence entities? no thanks I don't want it even if given free
Agree.AWS is a monster. Competition is there and AWS still continues to quickly grow. I’m buying on every AMZN dip
Henry_22 profile picture
Spin AWS off, then it becomes the most valuable company in the world.
Amirite @Scott Galloway ??
Great job Chris you are well ahead of the uneducated bears on AMZN . This is a 3 to 5 X from here . Berkshire Hathaway of the future !
GR Value profile picture
Yeah or it could be worth 30 trillion or infinity or priceless.

See in this thing called REALITY, stocks don't have something called "intrinsic value" really, it's mostly future earnings that are not in creation yet. So that whole pricing in the next 50 years doesn't make a whole lot of sense unless you were the fool to pay $190 for Amazon before the 50% and soon 75% declines.
Costco_Pizza profile picture
@GR Value Be careful, the other commenters here will get angry at you for saying this. So a subdivision of Amazon could potentially be worth $3T, while the full company today is only worth $1T. If this were absolutely true everyone would be purchasing shares this instant. We should all be throwing our life savings into it. No one is doing this. Why is that?
I love AWS, and if spun out, I'd sell all my Amazon retail stock to buy more AWS. With that being said, I would be careful of assigning value to AWS images. Most of the images/instances are used for a particular team in a particular business, and even then there are a lot of one-use images for code verification and stuff like that. A hundred trillion is a big number, but there's no monetary value to 99.99999%+ of those images. It is even less legitimate as assigning valuation because of page clicks.
@prema_donna no disrespect intended, but for someone that claims to be an AWS fan, you've demonstrated a pretty poor understanding of the business. AWS earns monthly revenue from both steady state and variable workloads. Most enterprises commit spend for multi year terms...so regardless of individual workloads or use cases, the dollar value of those agreements hold. These recurring revenue streams overlap and tend to grow over time - in the last quarter you had. a business driving a 70+Billion dollar run rate growing 37% YoY. Let's just say that growth crashes from the 35% range down to 20% YoY for the next 5 years. You end up with a highly profitable, 187B run rate business.....for comparison's sake, that is more than 4 Oracles with more than 5x the growth rate.
@alpha157 I think you read a lot in my comment that is not there. I'm just saying 100 trillion images stored on S3 doesn't mean anything. I work in the industry as a software engineer, and we probably have at least 500 billion AWS instances that have been pushed to S3. The overwhelming majority of those are single-use and are used to verify and test our code, with one image being created for each automated test job. There's a suggestion here that S3 alone is worth 1.5 trillion because of these images, most of which are single-use, which is not based on good information. Given my occupation, I need to know AWS well, which I do. I'm long Amazon and have been since early 2016. I just take issue with the analysis here.
SmokeyTh3Bear profile picture
@prema_donna you’re still paying for those instances but maybe on a savings plan or spot instance pricing if truly for testing . Source - work at AWS.
Elon the GOAT profile picture
Dream on
@Awjeanbeau was a song by Aerosmith.
@Awjeanbeau read my post above. Math is actually pretty straight forward.
Winnertakesall profile picture
Sounds like another Cathy Woods TAM story. Funny how people never assume competition will drive down margins. Just as silly as thinking Telsa will be the only EV maker.
AlphaElephant profile picture
@Winnertakesall Question is will cloud providers will be a future oligopoly that drives economic profits, a regulated utility, or super competitive commodity.
SmokeyTh3Bear profile picture
@Winnertakesall Apparently you’re not familiar with cloud economies of scale and the Amazon flywheel.
The 3 trillion dollar 800 pound gorilla…. Thats what were going with?
Yep, if you know, you know. Amazon is the steal of the century right now.
littlecubbie2019 profile picture
Maybe if was splits off Amazon. That would still be years down the road to get to that valuation though. Also what would that make msft worth? 5t?
@littlecubbie2019 and apple 10T.
Get Rich Brothers profile picture
No doubt that AWS is going to continue being a huge growth driver for AMZN in the years to come.
OverTheHorizon profile picture
Bezo’s pipe dream just like Zuckerberg’s Metaverse :

@OverTheHorizon Ahh, the old 80bn with 30% growth 'pipe dream'.

About AMZN

SymbolLast Price% Chg
Market Cap
Yield (TTM)
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

Related Stocks

SymbolLast Price% Chg
Amazon.com, Inc.
Alibaba Group Holding Limited
PDD Holdings Inc.
Prosus N.V.
MercadoLibre, Inc.
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.