Stocks
AWS Drives Amazon's Future Growth
Amazon Web Services (AWS) is the key to Amazon's future success as an investment, according to analysts. AWS's growth rate and profitability far exceed those of its commerce siblings.
In Q2, AWS generated $42.2 billion in revenue but converted $16.6 billion into operating income for a margin of 39.3%, significantly higher than the North American commerce division's 7.8% operating margin.
Amazon is heavily investing in AWS computing capacity, spending $220 billion on capital expenditures in 2026. This will lead to faster AWS growth, making it an increasingly important part of Amazon's business.