Amazon (NASDAQ: AMZN) has seen a significant boost in its stock price, rising approximately 18% after the company reported exceptional earnings last week. The tech giant has recently surpassed a market cap of $3 trillion, with CEO Andy Jassy projecting that Amazon could potentially grow to be valued at over $15 trillion.
One of the key drivers behind this optimistic outlook is Amazon Web Services (AWS), which accounted for 60% of the company’s operating profit in Q2 2023, showing a remarkable 37% growth rate. Jassy indicated AWS could evolve into a $1 trillion annual revenue business, with current revenue around $150 billion. This exponential growth is fueled by increasing demand for cloud computing and AI resources, prompting Amazon to allocate $220 billion in capital expenditures by 2026 to meet future needs.
If AWS achieves its revenue goals, the combined operating income from AWS and other business segments could reach $471 billion, facilitating Amazon’s ascent to a potential $15 trillion market cap.
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