Amazon's Growing Cloud and Web Services Business Won't Move Stock Much
Amazon (AMZN), apart from being a major online retailer of books, DVDs, music, games, apparel, and other merchandise, also has a small business of providing cloud and other web services. It offers web services like cloud computing and cloud storage service offerings, in which it competes with bigger players likeGoogle (GOOG), Microsoft (MSFT) and Salesforce.com (CRM). Amazon also owns & operates websites such as Audible.com, IMDB.com, and Shelfari.com and other web services together account for only around 3% of Amazon’s stock by our estimates. The company’s revenues from this business has grown at a steady rate over the years, and we expect the growth to pick up driven by increased outsourcing of web services and growing demand for online media and web 2.0.
While we expect Amazon’s cloud and other web services revenues will reach over $5 billion by the end of our forecast period, Trefis members project theComplete Story »