"Amazon's revenue in the fourth quarter was $213.4 billion, up 13.6% from a year ago. More than $177 billion of that was from the company's e-commerce division, with sales up 11.8% from last year. But that pales in comparison to Amazon Web Services (AWS), which saw revenue jump 23.6% to $35.5 billion. More importantly, AWS is a much more profitable segment, generating income of $12.4 billion versus operating income of $11.6 billion for the much larger e-commerce division."
"for the much larger e-commerce division. AWS is by far the most interesting part of Amazon's business today, with new deals with OpenAI, Visa, Lyft, United Airlines, CrowdStrike, Salesforce, and more. That's why Amazon is planning to spend $200 billion on AI infrastructure this year -- a spending plan that is making some investors nervous, but should pay off in the long run."
AI stock build-out has a long runway that will benefit buy-and-hold investors. Two leading hyperscalers are Alphabet and Amazon, both offering cloud computing services for developing, training, and running AI programs. Amazon originated in e-commerce and expanded with Amazon Marketplace. Amazon's quarterly revenue was $213.4 billion, with more than $177 billion from e-commerce and AWS revenue of $35.5 billion. AWS generated $12.4 billion of income and supports new deals with OpenAI, Visa, Lyft, United Airlines, CrowdStrike, and Salesforce. Amazon plans to spend $200 billion on AI infrastructure this year. Alphabet has roots in search and Chrome and operates a growing cloud division.
Read at The Motley Fool
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