Think Amazon Is Expensive? These 3 Charts Might Change Your Mind.

Core Insights - Amazon, with a market capitalization of $2 trillion, is considered one of the most valuable companies globally, and there are still significant growth opportunities ahead for new investors [1] Company Overview - Amazon is primarily recognized as an e-commerce business, being the second-largest retailer by revenue, but its Amazon Web Services (AWS) segment presents even more exciting growth potential [2] AWS Growth and Market Position - AWS is the largest cloud infrastructure provider globally, holding an estimated 30% market share, driven by increasing demand for cloud computing, particularly due to investments in AI technologies [4] - The contribution of AWS to Amazon's total revenue has increased from approximately 10% in 2020 to over 15% today, highlighting its growing importance [5] - AWS has been responsible for more than half of Amazon's total operating profits in recent years, indicating its critical role in the company's profitability despite accounting for a minority of sales [7] Competitive Advantages - AWS's 30% global market share allows it to offer more infrastructure than any other provider, and its scale and brand recognition provide operational efficiencies that competitors struggle to match [8] Investment Perspective - Although Amazon's stock is priced at 34 times earnings, which is high compared to the market, the ongoing AI revolution and the increasing significance of AWS suggest that the stock remains a viable option for patient investors [9]