Has Amazon Found the Next AWS?
Amazon (NASDAQ: AMZN) is currently the leader in cloud computing. The company's Amazon Web Services (AWS) is one of its biggest drivers of operating profits, as its core e-commerce business carries notoriously low margins. AWS still has attractive long-term prospects. CEO Andy Jassy noted in a letter to shareholders that 85% of IT spend still occurs on-premises.
As this spending moves to the cloud, Amazon should be one of the biggest winners. But has the tech leader found another potential growth avenue that could rival AWS? The company recently announced a new business segment, prompting investors to wonder whether that's the case. Let's look into it and decide what it could mean for investors.
Image source: The Motley Fool.
Source Fool.com
