Amazon Cloud and E-Commerce Drive Potential for Double by 2028

Amazon's cloud computing division, Amazon Web Services (AWS), has been a major beneficiary of the artificial intelligence (AI) boom. Revenue grew 37% year over year last quarter and hit $148.4 billion over the last 12 months.

AWS' backlog growth and massive capital spending plans suggest this revenue growth should accelerate in the quarters ahead. With fantastic profit margins at 37% over the last 12 months, if AWS revenue can grow to $300 billion, segment profits will reach $100 billion even if margins slip back closer to 30%.

Amazon's e-commerce platform also has strong growth potential. The North America and International segments now account for $627 billion in retail revenue and should see continued growth from e-commerce taking share in markets around the world along with margin expansion due to economies of scale.