Key Points
Amazon (NASDAQ: AMZN) generated approximately 21% of its total revenue from Amazon Web Services (AWS) in Q2 2023, while AWS accounted for 60% of the company’s operating income. AWS revenue surged by 37% during this period, outpacing North American and international commerce sales, which grew by 16% and 15%, respectively.
CEO Andy Jassy highlighted a rising backlog at AWS, which reached $496 billion, indicating strong demand for cloud services. He warned that Amazon may struggle to meet computing power demands as early as 2026 and 2027, showcasing AWS’s critical role in the company’s future financial performance.
AWS is considered the most significant reason to invest in Amazon now, with expectations for continued growth and profitability in the coming years.
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.
