Here's Why Amazon Is a Brilliant Buy Now (Hint: It's Not E-Commerce)

Core Viewpoint - Amazon should be viewed primarily as a cloud computing company rather than an e-commerce company, with Amazon Web Services (AWS) being the main reason for investment [2][6]. Company Performance - Amazon's North American segment saw an 8% year-over-year sales increase with a 6.3% operating margin, while AWS experienced a 17% revenue growth and a 39% operating margin in Q1 [4]. - AWS accounted for 63% of Amazon's total operating profits in Q1, despite only representing 19% of total revenue [6]. Industry Trends - The cloud computing market is projected to grow from approximately $750 billion in 2024 to $2.3 trillion by 2030, indicating a strong upward trend in the industry [11]. - Two key growth trends for cloud computing include the migration of businesses to the cloud and the increasing demand for AI workloads [8][10]. Investment Outlook - Investors should focus on operating profit growth rather than revenue growth, as AWS is driving Amazon's stock performance [12]. - Despite a slight slowdown in operating income growth, it remains in the double-digit range, suggesting strong future stock performance for Amazon [14].