Amazon's Cloud Business Is Accelerating. Time to Buy the Stock?

Core Viewpoint - Amazon's cloud computing segment, Amazon Web Services (AWS), has shown significant growth, with a 24% year-over-year increase in Q4, marking the fastest growth in 13 quarters, despite a 10% drop in share price after earnings release [2][3]. Financial Performance - Amazon's Q4 net sales reached $213.4 billion, reflecting a 14% year-over-year growth, surpassing previous guidance [3]. - Revenue from Amazon's online stores increased by 10% to approximately $83.0 billion, while third-party seller services revenue rose by 11% to about $52.8 billion [4]. - The company's physical store revenue grew by 5% year over year, totaling $5.9 billion [4]. Higher-Margin Segments - Subscription services revenue increased by 14% year over year to $13.1 billion, and advertising services revenue rose by 23% to $21.3 billion [5]. - AWS revenue jumped 24% to $35.6 billion, accelerating from a 20% growth in Q3 [5][6]. Future Outlook - Management anticipates a robust business momentum in Q1, guiding for revenue growth of 11% to 15% year over year [5].