Posts
Rate Of ReturnOppenheimer on Amazon $Amazon(AMZN.US):
"AWS plans to double its capacity by 2027, and capacity has already doubled since 2022, with at least 1GW added in Q4.
Our analysis shows that each additional 1GW of capacity can generate approximately $3 billion in historical revenue. Applying this to future GW capacity forecasts and considering price discounts indicates that Wall Street's expectations for AWS revenue in 2026/2027 have room for upward revisions of 14%/22%, including a 3% upward revision in Q4.
The most optimistic forecast is that AWS revenue will reach approximately $400 billion by 2030. For this business alone, at a 20x P/E ratio, AWS's own market cap would reach about $3 trillion.
Today, the entire company's market cap stands at $2.5 trillion.
The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.
