RBC analyst Mark Mahaney remained positive about the outlook for Amazon’s AWS (NASDAQ: AMZN) after attending the 9th annual “re: Invent” event.
The company remains a “clear leader” in the cloud infrastructure as a service (IaaS) and platform as a service (Paas) market, Mahaney writes in the research note sent to customers today.
“It should be noted that AWS’s growth rate has accelerated over the years: it took AWS 123 months to reach $ 10 billion in annual revenue, 23 months from $ 10 billion to $ 20 billion, 13 months from $ 20 billion to $ 30 billion and 12 months from $ 30 billion to $ 40 billion this year. With this additional $ 10 billion in revenue for AWS over the past 12 months comes an already high base of $ 30 billion in revenue, showing the company’s continued leadership and growth in cloud computing. . “
AWS’s global market segment share currently stands at 45%, more than double that of second-largest Azure at 18%.
“We believe the huge opportunity ($ 1T +) in an under-penetrated IT market (4% cloud penetration vs. 96% on-premise), AWS customer obsession, depth and breadth of its product offerings, along with its scale, will allow AWS to maintain a leadership position for the foreseeable future. “
During the first day of re: Invent, Andy Jassy, CEO of AWS, said the pandemic has accelerated cloud adoption by years.
“AWS currently offers the most comprehensive and extensive product features and capabilities available in the cloud market today, for compute, storage, analytics, IoT and machine learning, for no. to name a few. AWS offers more tools and capabilities than any other cloud service provider, it continues to innovate at a rapid pace, and enjoys the maturity and scalability of operational performance from its 6 year lead, ”wrote Mahaney.
Speaking about the importance of reinventing themselves regularly, Jassy said Fortune 500 companies generally struggle to stay on top unless they are able to reinvent themselves on a regular basis. In this space, it’s important to reinvent yourself early and not wait for desperate times, according to Jassy, who added that the right culture and the right technology are needed to reinvent yourself.
Mahaney rates AMZN as “outperforming,” with a target price of $ 3,800 per share.
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Amazon.com shares closed at $ 3,220.00 yesterday.