Tesla Inc. CEO Elon Musk is impressed by the sheer size of Amazon.com Inc.'s (NASDAQ:AMZN) cloud computing business, Amazon Web Services (AWS) after the company's first-quarter earnings came in on Tuesday.
What Happened: Musk expressed astonishment after a user, Charlie Bilello, posted AWS's revenue growth over the last decade. He revealed that AWS's trailing 12-month revenue of $94.4 billion is higher than that of 466 companies in the benchmark S&P 500 index.
Bilello's post shows AWS' revenue growing from $3.1 billion in 2013 to $94.4 billion in 2024 in the preceding 12 months.
Musk posted a one-word reaction to this, saying, "Wow."
Wow
— Elon Musk (@elonmusk) May 1, 2024
That's not all – Amazon CEO Andy Jassy revealed that AWS has hit more than $100 billion revenue run rate, in the company's Q1 2024 earnings call on Tuesday.
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AWS, which is just one part of Amazon's business, began as a project to cater to the company's internal needs. However, it was so successful that Amazon ended up offering it as a service to other companies as well.
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Why It Matters: AWS is one of the core businesses of Amazon. While its total revenue surged 13% year-on-year in Q1 to $143.3 billion, AWS revenue surged 17% year-on-year to $25 billion.
Jassy remained bullish on AWS, saying, "There is a very large opportunity in front of us," thanks to generative AI and the fact that "85% or more of global IT spends remains on-premises."
Price Action: At the time of writing, Amazon's shares were up 2% in premarket trading on Wednesday, after closing at $175 on Tuesday, according to Benzinga Pro.
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