Amazon Cloud-storage Business Nears $3 Trillion Value

Share post:

According to Redburn analyst Alex Haissl, Cloud Unit, Amazon Web Services is heading for a value of US$3 trillion. However, the analyst does not say when the value of US$3 trillion will be reached.

Due to the size of the unit, Haissl said, the company will eventually be forced to spin it off from the larger online retail operation.

“Separating AWS may not be on the table for now, but if the performance gap versus the non-AWS parts continues to widen, it could be on the table further down the road,” wrote Haissl, former head of automotive research at Berenberg.

Haissl recommend buying Amazon shares, as the stock is expected to reach US$270 next year. Other valuable shares to buy include Microsoft. He recommends Snowflake as neutral and a sell on MongoDB.

In a 128-page report on the cloud computing industry, Haissl said Amazon’s cloud unit was better positioned than other rivals for a number of reasons, including lower costs and better technology.

While Amazon Web Services make up less than 20% of Amazon’s revenue, Haissl writes that the unit will contribute all of its profits this year.

The sources for this piece include an article in Bloomberg.


Related articles

VMWare revenue drops by $600 million but Broadcom assures investors growth plan is on track

In its first full quarter under Broadcom's ownership, VMware's revenue fell by $600 million, dropping to $2.7 billion....

Global data breach crisis: Are Santander and Ticketmaster victims of massive cyberattacks linked to Snowflake compromise?

Santander Bank and Ticketmaster have fallen prey to extensive data breaches orchestrated by the notorious hacker group, ShinyHunters....

Starlink’s evolution making it less “TCP/IP friendly”

The rapid evolution of Starlink's satellite internet presents significant challenges for traditional Transmission Control Protocol (TCP), according to...

Google does the unthinkable – reportedly erasing a 125 billion dollar pension fund

It's reported that Google inadvertently erased the Google Cloud account of UniSuper, an Australian pension fund valued at...

Become a member

New, Relevant Tech Stories. Our article selection is done by industry professionals. Our writers summarize them to give you the key takeaways