Amazon’s (NASDAQ:AMZN) cloud computing arm, Amazon Web Services (AWS), is poised to achieve a significant milestone: reaching $100 billion in sales by 2024.
In a recent interview on the Opening Bid podcast, AWS CEO Adam Selipsky revealed the company’s progress, stating, “This quarter, we just announced a few days ago that AWS did hit the $100 billion annualized revenue run rate milestone — not many tech companies have done that.”
Selipsky highlighted the growing demand for generative AI services and the ongoing migration of workloads to the cloud as key drivers of AWS’s success. In the first quarter, AWS sales surged 17% year over year to $25 billion, with operating profits nearly doubling to $9.4 billion.
AWS’s robust performance contributed significantly to Amazon’s Q1 operating profits, representing about 62% of the company’s total operating profits.
Selipsky expressed optimism about the future growth prospects of AWS, noting that despite the strong momentum, only 85% of companies currently store their data on-premise, leaving ample room for expansion in the cloud market.
Emphasizing Amazon’s customer-centric approach, Selipsky stated, “We’ll only be as successful as what we do tomorrow for customers,” reflecting the company’s commitment to its “Day One” culture instilled by founder Jeff Bezos.
While Selipsky downplayed the focus on outperforming rivals like Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), analysts believe that AWS will continue to drive Amazon’s profits and stock price.
In addition to AWS’s performance, investors are closely monitoring the broader tech sector, including key players like Microsoft, Apple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA), Alphabet, Meta Platforms (NASDAQ:META), and Tesla (NASDAQ:TSLA). The recent resurgence of the “Magnificent Seven” trade underscores the strength of high beta tech names in the current market environment.
For further insights, investors can tune in to the Opening Bid podcast featuring veteran investors Troy Gayeski and Jay Woods, available on various platforms including Yahoo Finance, YouTube, Spotify, Pandora, Amazon Music, and iHeartmedia.
Featured Image: Megapixl ©Bedo
