Amazon’s cloud computing division, Amazon Web Services (AWS), has been a major driver of the company’s growth and profitability. And according to a recent analysis, AWS may be on the brink of a significant breakthrough.
Analyst Mark Mahaney of RBC Capital Markets believes that AWS is about to experience what he calls an “Azure Moment” – a reference to Microsoft’s successful cloud platform, Azure. Essentially, this means that AWS is poised to take its dominance in the cloud computing market to the next level.
Mahaney points to several factors that support his prediction. For one, AWS has already established itself as the clear leader in the cloud computing space, with a 32% market share compared to Azure’s 19%. Additionally, AWS has been able to maintain its lead by constantly innovating and offering new services, such as machine learning and artificial intelligence tools.
But what really sets AWS apart, according to Mahaney, is its strong track record of profitability. While many other tech companies have struggled to turn a profit in the cloud computing industry, AWS has consistently delivered strong margins and generated significant revenue for Amazon. This financial stability sets AWS up for even greater success in the future.
So what does this mean for investors? Mahaney suggests that now is the time to consider investing in Amazon, specifically because of the potential for growth in AWS. With AWS expected to bring in $50 billion in revenue by 2020, it’s clear that this division will continue to be a major driver of Amazon’s overall success. For retail investors, this could be an opportunity to get in on the ground floor of a game-changing moment for AWS and Amazon as a whole.
In summary, AWS’s “Azure Moment” is a potential turning point for the already dominant cloud computing division. With a strong track record of profitability and constant innovation, AWS is primed for even greater success in the future. For investors, this could mean significant growth for Amazon and a smart opportunity to consider adding it to their portfolio.