Amazon’s Strong Growth vs. Tesla and SpaceX
Amazon’s cloud division, Amazon Web Services (AWS), is projected to generate substantial earnings growth, with a revenue increase of 28% year-over-year last quarter, totaling $37.6 billion. If this growth continues, operating income could reach $61.5 billion over the next 12 months. In contrast, Tesla and SpaceX are facing uncertainties, with Tesla’s operating earnings at just $5.3 billion over the last year and SpaceX’s estimated revenue at $16 billion for 2025, making it unlikely for these companies to match Amazon’s earnings potential.
Additionally, Amazon’s North American retail revenue has accelerated to a 12% year-over-year growth, reaching $438 billion, with projections suggesting it could hit $491 billion in the next 12 months. This suggests a combined earnings power from AWS and North American retail of approximately $100 billion, which would elevate Amazon’s market cap from $2.77 trillion to around $3.25 trillion within a year, further solidifying its market leadership.
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