Amazon's AWS Predicted to Reach $1 Trillion Revenue Milestone
Amazon's Andy Jassy believes that Amazon Web Services (AWS) could become a $1 trillion business someday. AWS has been growing rapidly, posting a jaw-dropping 37% growth rate in recent years. The company's demand for computing resources is expected to continue rising, with Jassy noting that Amazon will not have enough capacity to meet demand by 2026 and the shortage is expected to last into 2027.
This growth could lead to a significant boost for Amazon's stock performance, potentially making it a $15 trillion business. If AWS reaches its predicted revenue of $1 trillion, it would equate to huge stock gains, with a potential operating income of $393 billion. This is based on AWS's current 39% operating margin.
Amazon's other businesses could also see significant growth if they can double in the same time frame that AWS reaches its predicted revenue mark. If this happens, Amazon's total operating income would rise to $471 billion, a 403% increase from today's levels.