Key Facts About Amazon’s Future Growth
Amazon is projected to significantly benefit from the artificial intelligence (AI) trend, particularly through its cloud computing unit, Amazon Web Services (AWS), which reported over $110 billion in revenue in 2022. AWS has seen a 17% year-over-year growth in Q1 2023 and could reach $200 billion in annual revenue by the end of the decade, with an operating margin of 37.5% translating to $75 billion in operating income.
As of now, Amazon’s market capitalization stands at approximately $2.3 trillion. Analysts predict that with continued profit margin expansion and earnings growth driven by both AWS and e-commerce efficiencies, Amazon could hit an operating income of $150 billion within the next decade, making a $3 trillion market cap plausible. The North American division, with close to $400 billion in revenue and a 6.3% profit margin, is expected to improve significantly as automation and high-margin revenue streams grow.
