Amazon Cloud Business Soars to New Heights with 37% Revenue Growth

Amazon's recent quarterly earnings report showed impressive growth in its cloud business, with AWS revenue increasing by 37% year-over-year. This marks the fifth consecutive quarter of accelerating growth for Amazon's cloud division, which now accounts for 61% of total operating income.

The company's core retail operations also saw a 16% increase in revenue, driven by strong advertising growth and improvements in its logistics network.

Despite facing intense competition from rivals like Alphabet and Microsoft, Amazon's forward P/E ratio stands at 23.3, indicating reasonable investment value.

Coupang, another e-commerce company, reported a 14.1% increase in revenue for FY 2025, but its net income was significantly lower due to a thin net margin of 0.6%. In contrast, Amazon's net income reached approximately $77.7 billion with a net margin of nearly 11%, highlighting the company's strong profitability in e-commerce and cloud services.