AWS Backlog Highlights Amazon’s Growth Potential
Amazon’s cloud computing division, Amazon Web Services (AWS), has reported a substantial backlog of $496 billion as of Q2 2023, indicating significant future revenue yet to be recognized. At its current run rate of $42.2 billion, it could take nearly three years to process this backlog, reflecting tremendous demand for cloud services.
To meet this rising demand, Amazon plans to invest $220 billion in capital expenditures in 2023, primarily for building new data centers. This investment highlights AWS’s importance, as it generated 60% of Amazon’s operating income while comprising only 21% of total sales in the second quarter.
CEO Andy Jassy stated that Amazon anticipates continued demand challenges through 2027, with emerging demand for 2028 already visible, underscoring the cloud computing sector’s robust growth trajectory.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
