![]() ![]() CEO Andy Jassy expects a deluge of cloud-services demand to emerge over the next few years thanks to the rise of artificial intelligence and machine-learning applications, and demand will likely continue to grow from there.ĪI could also lead to advancements in robotics and automation that transform Amazon's massive online-retail business. As the leading provider of cloud infrastructure services, Amazon remains in the early stages of benefiting from the evolution of artificial intelligence. While management has said that revenue growth for AWS may see further deceleration in the face of economic pressures this year, the outlook a bit further down the road is more promising. Admittedly, this was down from the 20% year-over-year growth and 24.3% operating margin that the business posted in last year's fourth quarter, and the cloud business could face some ongoing headwinds in the near term. In the first quarter, the company's Amazon Web Services (AWS) cloud-services unit grew revenue 16% year over year to reach approximately $21.3 billion and posted an operating income margin of 24%. Rising costs and slowing growth have caused Amazon stock to see some volatile trading over the last year, but its core business pillars continue to look strong and have plenty of room for long-term growth. Even after an impressive rally this year, the company's share price remains off 30% from its high, and there's a good chance that the tech giant's valuation will bounce back and go on to reach new heights over the next few years and beyond. It's also a top mega-cap stock that continues to offer attractive upside for long-term investors. ![]() ![]() With industry-leading positions in e-commerce and cloud-infrastructure services, Amazon continues to be one of the world's strongest and most influential businesses. ![]()
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