According to Redburn analyst Alex Haissl, Amazon.com Cloud Unit, Amazon Web Services is heading for a value of US$3 trillion. However, the analyst does not say when the value of US$3 trillion will be reached.<\/p>\n
Due to the size of the unit, Haissl said, the company will eventually be forced to spin it off from the larger online retail operation.<\/p>\n
“Separating AWS may not be on the table for now, but if the performance gap versus the non-AWS parts continues to widen, it could be on the table further down the road,” wrote Haissl, former head of automotive research at Berenberg.<\/p>\n
Haissl recommend buying Amazon shares, as the stock is expected to reach US$270 next year. Other valuable shares to buy include Microsoft. He recommends Snowflake as neutral and a sell on MongoDB.<\/p>\n
In a 128-page report on the cloud computing industry, Haissl said Amazon’s cloud unit was better positioned than other rivals for a number of reasons, including lower costs and better technology.<\/p>\n
While Amazon Web Services make up less than 20% of Amazon’s revenue, Haissl writes that the unit will contribute all of its profits this year.<\/p>\n