Amazon's E-Commerce Empire Surpasses Exxon and Microsoft

Amazon's e-commerce division is often overlooked as a significant contributor to its market value. With $700 billion in e-commerce revenue, based on its first-half revenue run rate, it surpasses Exxon's total and is larger than Microsoft's.

The majority of Amazon's e-commerce revenue comes from North America, with an operating profit expected to reach around $35 billion this year. The international segment contributes a quarter of the revenue, with an operating profit of about $7 billion.

AWS (Amazon Web Services) is another crucial division, with projected revenue reaching $180 billion in 2026 and operating income of approximately $70 billion. AWS' top-line growth is around 40%, significantly higher than the e-commerce segment's 18% growth rate.

Amazon's market cap stands at $3 trillion, making it challenging to estimate how much e-commerce contributes to this value. By moving Amazon's valuation to $1 trillion for its e-commerce division alone, AWS would be worth around $2 trillion, exceeding the market value of AI giant Anthropic and even SpaceX.

Some investors argue that Amazon should be broken into two public companies due to the relatively small connection between its e-commerce and cloud divisions. This separation could provide investors with a clearer picture of each segment's performance and potential.