Amazon‘s AMZN aggressive capital expenditure plans for its Amazon Web Services (“AWS”) division signal confidence in the cloud computing market’s growth trajectory, positioning the stock as a compelling investment opportunity despite near-term margin pressures.
The company reported third-quarter operating income of $17.4 billion, demonstrating robust profitability even as it scales infrastructure investments. AWS generated $27.5 billion in revenues during the quarter, representing 19% year-over-year growth, with the segment’s operating margin expanding to an impressive 38%. This performance underscores the division’s ability to maintain pricing power while capturing incremental market share in enterprise cloud services.
Management guided fourth-quarter revenues between $181.5 billion and $188.5 billion, reflecting anticipated momentum across all business segments. The company expects operating income to be in the range of $16 billion to $20 billion, indicating sustained…
https://finance.yahoo.com/news/aws-growing-capital-spending-boost-132800887.html
