Amazon AMZN is constantly gaining traction on the back of its robust cloud services portfolio.
This is evident from the latest five-year agreement between Amazon Web Services (“AWS”) and FWD Group Holdings Limited (“FWD”). The agreement is the extension of the latter’s cloud technology collaboration with AWS.
This highlights the efficiency and reliability of AWS’s innovative cloud products and services.
Per the agreement, AWS has become the strategic cloud provider of insurance company FWD. In order to support its cloud-first strategy, FWD intends to leverage AWS’s cloud computing capabilities, agility and scalability.
Amazon.com, Inc. Price and Consensus
Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote
Customer Base Expansion
The latest move of FWD has added strength to AWS’s customer base.
AWS’s concerted efforts toward bolstering its service offerings are likely to continue driving its customer momentum.
Recently, NinjaTech AI partnered with AWS to launch its next-generation AI agent called Ninja, which has been trained using the latter’s machine learning (ML) chips Trainium and Inferentia2 in order to make them powerful and useful.
CrowdStrike CRWD extended its strategic partnership with AWS to accelerate cloud security and AI innovation. Notably, CrowdStrike is using Amazon Bedrock and Amazon SageMaker in order to boost innovation in SIEM transformation, and novel cybersecurity AI use cases. More precisely, CrowdStrike aims to accelerate the development of generative AI capabilities in its Falcon Platform.
In addition, Brightcove started using Amazon’s generative AI assistant called Amazon Q Business on AWS internally for real-world use cases applicable to the enterprise, media, and entertainment technology sectors.
BlackBerry recently unveiled a generative AI-backed cybersecurity advisor called Cylance Assistant, which leverages Amazon Bedrock to enable organizations to enhance their cyber security operations.
Zilch extended its collaboration with AWS to expand the use of the latter’s AI and ML services in order to accelerate sales in the next two years, and improve customer service and lending decisions.
We believe that AWS’s expanding customer base will continue to drive its top-line growth. In first-quarter 2024, AWS generated revenues of $25.04 billion (18% of the total sales), which grew 17% year over year.
The strengthening performance of AWS, which has become the key catalyst of Amazon, will likely instill investor optimism in the stock in the days ahead.
AMZN has gained 20.3% year to date.
Competitive Scenario
We believe that AWS’s growing global clientele, on the back of its expanding portfolio, as well as data centers and cloud regions, will continue to help the Zacks Rank #3 (Hold) company gain a competitive edge against its peers, namely Microsoft MSFT and Alphabet’s GOOGL Google.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Notably, Amazon accounted for 31% of the worldwide cloud provider market in first-quarter 2024, per the latest Canalys data.
Microsoft, which accounted for 25% of the market, is riding on solid momentum across its Intelligent Cloud business that reported $26.7 billion in revenues in third-quarter fiscal 2024 (43.2% of the total revenues), up 21% year over year. The business is benefiting from the robust adoption of Azure, driven by strength in Azure AI. Azure and other cloud service revenues grew 31% year over year.
Google Cloud is contributing substantial growth to Alphabet’s total revenues. Expanding data centers, availability zones and cloud regions are expected to keep boosting the company’s cloud position. Alphabet’s Google Cloud acquired 10% of the market and reported revenues of $9.6 billion (11.9% of the total revenues), up 28.4% year over year in first-quarter 2024.
(NOTE: This article is being reissued to correct an error. The original version, published May 24, 2024, shall no longer be relied upon.)
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