Think Amazon Is Expensive? This 1 Chart Might Change Your Mind.

Core Insights - Amazon is positioned at the forefront of the AI revolution, with a market cap of $2.4 trillion, raising concerns among investors about its valuation [1] - The company operates in two main segments: e-commerce and Amazon Web Services (AWS), with AWS being the largest cloud infrastructure provider globally [2] Revenue Growth - Over the past decade, AWS revenue has increased by more than 1,000%, significantly contributing to Amazon's overall sales growth of 496% [3] - Since 2020, AWS revenue has grown by over 150%, while online store sales have only increased by 26% [4] Profitability - AWS has been the primary contributor to Amazon's operating income, showcasing much higher profitability compared to the e-commerce division [4] Market Position and Future Growth - AWS holds a 30% global market share in cloud infrastructure, providing the scale and capital necessary for continued investment in growth [7] - The anticipated growth in AI spending, projected to exceed 30% annually over the next decade, positions AWS for rapid business expansion [7] - The growth potential of AWS suggests that Amazon's stock may be undervalued in the long term [8]