Amazon CEO Andy Jassy Says AWS Would Be 24th on the Fortune 500 List. Here's What That Means for the Stock
AWS is overshadowing Amazon's e-commerce operations.
Overview
Amazon's (NASDAQ: AMZN) second-quarter update, released on July 30, was so impressive that the company's stock has been rising ever since. E-commerce sales were strong during the period, advertising revenue accelerated compared to recent quarters, and the tech giant's most important segment, Amazon Web Services (AWS), posted a blowout quarter. AWS sales climbed by 37% year over year -- its fastest growth rate in 18 quarters -- to $42.2 billion. Amazon CEO, Andy Jassy, was full of praise for AWS, and (at least) one thing he said highlights just how impressive this business is.
Image source: The Motley Fool.
Amazon was a pioneer in the cloud computing industry. The company turned AWS into the largest among the leading cloud providers. AWS has its peers beat in sheer breadth of capabilities, or its ability to handle the widest range of workloads. That's one of the reasons why, despite fierce competition, AWS has continued to grow at a good clip. And according to Jassy: "AWS is now a $169 billion annualized revenue run rate business, which, for perspective, would place it 24th on the Fortune 500 list if it was a stand-alone company."
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Originally published at www.fool.com.