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.
2025 was great! I extended my lead over the S&P 500 by quite a bit: A 13.8% beat is pretty great! My compound annual growth rate is 16.2%. I'll take that all day (and life) long. But there are only 4 stocks in my Warren Buffett Bet Portfolio and they're quite volatile. If any one of them take a big hit in the next 2 years, I'll be in trouble.
Should cloud industry supply constraints sustain, see management expectation for doubling AWS capacity by '27 supporting multi-quarter revenue acceleration. Estimate new capacity could add $150B in annual revenue, driving material upside potential to '27/'28 estimates,
Amazon.com Inc. (NASDAQ: AMZN) is expected to post steady third-quarter gains powered by strong cloud, advertising, and retail performance. Apple Inc. (NASDAQ: AAPL) and Microsoft Corp (NASDAQ: MSFT) are both positioned for solid quarters - Apple benefiting from surging iPhone 17 demand and resilient Services revenue, while Microsoft extends its AI and cloud leadership through accelerating Azure momentum and heavy data center investments.