Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nasdaq  >  Amazon.com    AMZN

AMAZON.COM (AMZN)
Mes dernières consult.
Most popular
  Report  
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsofficial PublicationsSector newsTweets

Amazon Rivals Have Big Clouds to Fill

share with twitter share with LinkedIn share with facebook
share via e-mail
0
02/17/2017 | 06:59pm CEST
By Dan Gallagher 

Some things, even huge piles of money can't buy.

One of those things might be the ability to unseat Amazon.com Inc.'s AWS as the king of the cloud computing market. Not that others haven't made a game effort. The two largest challengers -- Microsoft Corp. and Google parent Alphabet Inc. -- have dropped about $52 billion combined in capital expenditures over the past three years, much of which goes toward their massive networks of data centers and related equipment. That's double what the two spent over the previous three-year period.

It's not been without results. Microsoft's Azure cloud service more than doubled its revenue in 2016 to about $2.7 billion, according to estimates from J.P. Morgan. Google's Cloud Platform surpassed $1 billion in revenue in 2016, estimates Aaron Kessler of Raymond James.

The latter is particularly of note, given that it's been barely a year since Google brought in former VMware chief Diane Greene to run the cloud division and focus on enterprise customers. It took AWS at least five years to hit the $1 billion mark, judging from Amazon's limited disclosures at the time.

But Amazon has only gained momentum since. AWS generated $12.2 billion in revenue in 2016. That's a gain of 55% from the previous year. Google Cloud could double revenue this year to $2 billion, especially since $400 million is already effectively guaranteed from a five-year deal with Snapchat's parent company. But even if it did, Google Cloud would still be generating less than 12% of the $17 billion in revenue Wall Street expects from AWS in 2017.

That speaks distinctly to Amazon's first-mover advantage. The company launched its first cloud offerings 11 years ago, long before it was clear why an online retailer would want into the expensive business of IT services. Investors at the time worried the ambitious company had found a new money pit. Free cash flow -- Amazon's favorite indicator of financial performance -- fell in 2006, after being positive and growing for four years.

But Amazon has now had the time to leverage that investment -- and billions more -- into a very profitable business. Operating income for AWS doubled to $3.1 billion in 2016, producing a margin of 25%. By contrast, Amazon's combined retail business generated operating margins of just over 2% for the year. Free cash flow, adjusted for capital leases and principal repayments, jumped 55% to $3.9 billion by the end of 2016.

This isn't to say Google and Microsoft are wrong to target the cloud. Brent Bracelin of Pacific Crest estimates that the top 30 cloud providers now account for only about 5% of annual corporate spending on enterprise technology. A big portion of that spending will move to the cloud. So there's plenty of market up for grabs -- provided one can get around Amazon's rather large mitts.

Write to Dan Gallagher at [email protected]

Stocks mentioned in the article
ChangeLast1st jan.
ALPHABET 1.31% 1089.45 Delayed Quote.2.09%
MICROSOFT CORPORATION -0.34% 96.11 Delayed Quote.12.31%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on AMAZON.COM
06:31pP&G, Nestle, Unilever forgo price increases to move product
RE
03:13pAMAZON COM : Now Anyone Can Create Their Own Personalized Alexa Skill in Just Mi..
BU
03:12pAMAZON COM : Now Anyone Can Create Their Own Personalized Alexa Skill in Just Mi..
PU
03:06pAMAZON COM : Studios Greenlights Utopia, Signs Gillian Flynn to Overall Deal
BU
01:41pAMAZON COM : In Celebration of World Book Day, AmazonCrossing Aims to Connect On..
AQ
12:47pSky reports strong quarter before bid battle steps up
RE
12:40pSky reports strong quarter before bid battle steps up
RE
11:06aAMAZON.COM, INC. (NASDAQ : AMZN) Files An 8-K Regulation FD Disclosure
AQ
08:48aAmazon, Best Buy Make Nice -- WSJ
DJ
02:32aAt last minute, AT&T withdraws planned IPO of its Vrio Corp unit
RE
More news
News from SeekingAlpha
03:39pAmazon carves out more apparel market share 
11:53aAmazon Targets Roku, Steals Away A Key Relationship With Best Buy 
11:19aLESSONS FROM 15 YEARS OF SHORT SELLI : How To Find Great Shorts 
11:03aAmazon Blows Through 100 Million Prime Memberships And Tesla Faces Another In.. 
08:47aFlattening Yield Curve, Trade Tensions, Kinder Morgan (Wall Street Breakfast .. 
Financials ($)
Sales 2018 233 B
EBIT 2018 6 225 M
Net income 2018 4 120 M
Finance 2018 12 509 M
Yield 2018 -
P/E ratio 2018 186,98
P/E ratio 2019 102,16
EV / Sales 2018 3,11x
EV / Sales 2019 2,49x
Capitalization 740 B
Chart AMAZON.COM
Duration : Period :
Amazon.com Technical Analysis Chart | AMZN | US0231351067 | 4-Traders
Technical analysis trends AMAZON.COM
Short TermMid-TermLong Term
TrendsNeutralBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 49
Average target price 1 655 $
Spread / Average Target 8,3%
EPS Revisions
Managers
NameTitle
Jeffrey P. Bezos Chairman, President & Chief Executive Officer
Brian T. Olsavsky Chief Financial Officer & Senior Vice President
John Seely Brown Independent Director
Patricia Q. Stonesifer Independent Director
Tom A. Alberg Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
AMAZON.COM28.59%739 638
QURATE RETAIL INC4.14%12 174
START TODAY CO.,LTD.-13.02%8 818
WAYFAIR INC-13.19%6 190
MONOTARO CO.,LTD.9.81%4 635
B2W COMPANHIA DIGITAL34.15%3 785