AWS Drives Amazon's Growth: Why Amazon Stock is a Top Investment Opportunity

The growth of Amazon's (AMZN) cloud computing division, Amazon Web Services (AWS), is driving the company's success and making it a top investment opportunity.

AWS' operating margin is significantly higher than Amazon's e-commerce business, with an impressive 39% margin in Q2 compared to the commerce division's 7.8%. This means that for every dollar generated by each of these businesses, AWS makes about five times more profit.

60% of Amazon's operating income came from AWS in Q2, highlighting the importance of this division. With revenue growth accelerating at a rate of 37% year over year, and expected to continue as new data centers come online, it is likely that AWS' revenue will jump and bring Amazon's operating profits along with it.

This rapid growth will have a positive effect on Amazon's overall business, making its operating profits grow faster than revenue. As a result, Amazon has a strong chance of being one of the top-performing stocks over the next five years.