$1 Trillion Cloud Stock Hidden Inside Amazon (Part 3)

Amazon (NASDAQ: AMZN).

Amazon Web Services AWD

It’s the world’s 4th largest company by market cap. And by next year it’ll surpass Walmart (NYSE: WMT) in terms of annual sales.

Shares have surged from its $1.50 IPO price to $3,130 today.

That’s a 20,587% return – turning just $500 into over $1 million.

Yet Amazon’s biggest gains are now in the rear-view mirror.

Go here for my #1 trade of 2022 – it’s NOT Amazon or any other “FANG stock.”

Amazon Owns Shocking 40% of E-Commerce

Amazon started as an online bookseller and has morphed into an e-commerce giant.

Today Amazon has more than a 40% market share in U.S. e-commerce. The #2 player is Walmart – with a 6% market share.

However, Amazon’s core e-commerce business is unprofitable. The company regularly sells products at prices that undercut competitors – both online and in retail.

Additionally, Amazon is spending huge amounts to build out its logistics and delivery operations. You can see this in the company’s capital expenditures – also known as “CapEx.”

CapEx jumped over 50% last year – topping $60 billion.

This includes buying airplanes, delivery trucks and vans. And opening more delivery centers. The goal is to provider faster delivery times for customers – without being dependent upon FedEx (NYSE: FDX), UPS (NYSE: UPS) or the U.S. Postal Service.

Chairman Jeff Bezos never focused on running a profitable company. Instead, he was always willing to reinvest the cash flow to build a better, bigger, stronger and more resilient business.

Historically – investors haven’t seemed to really care. Bezos prepped investors back in the 90’s when he came up with a simple mantra for the company: “Get big fast.”

But here’s the thing…

Amazon has one aspect of its business that is VERY profitable and very valuable. And it’s invisible to most folks.

$1 Trillion Cloud Company – Hidden Inside Amazon

In 2006 Amazon launched a division named Amazon Web Services – or AWS.

Basically, the company decided to rent out its web servers to other companies. This allowed Amazon to leverage its technology investment – and have other companies offset the cost.

Today we call this cloud computing.

AWS generated $18 billion in revenues and $5.3 billion in operating income last quarter. And it’s growing at an impressive 40% per year!

Today AWS is worth at least 10-times sales – or around $710 billion.

This means roughly one-half of Amazon’s market value is connected to AWS.

Given the rapid growth – AWS could be worth over $1 trillion within the next year.

Read Daily Profit tomorrow morning for my outlook and price target on Amazon.

One thing is clear: the biggest profits from the FANG stocks are a thing of the past.

That’s why I’m focused on uncovering the next generation tech stock winners.  And buying these stocks could be like jumping into Apple, Google, or Netflix 10+ years ago.

They’re called MACE stocks.

Access my urgent LIVE webinar to discover:

  • What exactly are MACE stocks – and why you have not heard of them
  • When these MACE stocks could become household names
  • Details on 5 of these next generation tech stocks
  • How these stocks could crush FANG stocks in the next 3 years
  • Why I’m planning to bet $100,000 of my personal savings on these stocks

Simply go here for urgent details.

Yours in Wealth,

Ian Wyatt

Ian Wyatt

Full Disclosure: Ian Wyatt owns shares of Facebook, Amazon, Apple, Netflix and Google.

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