Is AWS Worth More Than All Of Amazon?

Of Amazon’s (NASDAQ: AMZN | MSFT Price Prediction) $717 billion in revenue last year, $128 billion came from AWS. Amazon’s e-commerce business grew at about 8%. The AWS revenue growth was 20%.

A more telling number is that, out of Amazon’s $80 billion in operating income, 56% came from AWS. Fundamentally, these are two different businesses.

AWS is the largest cloud computing business in the world. By some measures, its market share is about 29%. Microsoft (NASDAQ: MSFT) Azure accounts for 23% of the market, placing it in second place.

The leap of faith regarding the AWS valuation is whether AI will accelerate its growth at a faster pace than it is today, and whether this will apply directly to AWS. AWS’s numbers will also depend on substantial capital expenditures, which over the next two years could amount to nearly half a trillion. (E-Commerce said it would use AI, but primarily for logistics and personnel…