Buy Amazon.com, Inc. (AMZN) Stock for its Web Services Diversification
Amazon is more about cloud computing than retail these days
By Aaron Levitt
Businesses can fire their entire IT staff and save bundles by switching to AMZN’s services.
Heck, Amazon will even drive over a 100-petabyte mobile hard drive to help corporate clients upload their data to AMZN’s cloud.
All of these efforts seem to be working to attract corporate clients.
Amazon’s case studies include Kellogg Company (NYSE:K) using AMZN’s data analytics to improve commodity trading, and drug maker Pfizer Inc. (NYSE:PFE) improving its R&D to more efficiently answer consumer questions.
AWS accounts for less than 10% of Amazon’s revenue. Shopping still rules the roost. But, margins at AWS are crazily high as, once it’s in place, Amazon doesn’t have to do much.
As a result, last quarter, the company’s cloud services division contributed roughly 75% of overall profit.
Source: Investor Place
http://investorplace.com/2016/12/amzn-s ... GMkwfl96M8