Better Cloud Stock: Amazon vs. DigitalOcean
For some, Amazon (NASDAQ: AMZN) and DigitalOcean (NYSE: DOCN) might be considered as the Goliath and David, respectively, of the cloud infrastructure services market. Amazon Web Services (AWS) controlled 32% of the global cloud infrastructure market at the end of 2022, according to Canalys, making it the clear market leader. DigitalOcean, which focuses on services to much smaller businesses, generated the equivalent of less than 1% of AWS' revenue last year.
The larger players generally fare better in this market than the smaller newcomers, since maintaining a cloud infrastructure platform requires massive investments in servers, networking equipment, and software. It can also be tough to maintain pricing power and generate consistent profits in that highly competitive space.
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Source Fool.com
