Amazon's Cloud Dominance Ignites Buying Interest

Amazon's shares have lagged behind the S&P 500 index over the last several months. Despite this, investors should find the company's valuation intriguing. Amazon has richly rewarded its shareholders in the past but has recently seen slower growth.

The cloud-computing business, Amazon Web Services (AWS), drives a significant portion of Amazon's profit. AWS has maintained a leading market share at 28% as of the first quarter and continues to grow rapidly, with a 36.8% year-over-year gain in the second quarter to $42.2 billion.

The company's dominant position in cloud computing, combined with its online retail leadership, makes Amazon an attractive investment opportunity. However, investors should consider the company's projected capital expenditures of $220 billion this year, which may be a concern for some.