How Amazon Quietly Powers The Internet – Forbes
Amazon (AMZN)
What was the last thing you heard about Amazon (AMZN)?
Let me guess. Its battle with Walmart WMT ? Or was it the FAAs approval of Amazons delivery drones? Most of this news about Amazons store is just noise that distracts investors from Amazons real force.
As Ill show, Amazon is running an operating system that powers some of todays most important technologies such as virtual reality, machine learning, and even quantum computing. Behind the scenes, it is utilized by over a million companiesincluding tech giants Apple AAPL , Netflix NFLX , and Facebook FB .
This is Amazons key and ever-growing moneymaker that has been driving Amazon stock to the moon. But before I pull the curtains, lets step back for a moment.
First, how Amazon makes moneyfor real
For all the online shopping fuss, Amazon doesn't earn much from its store. Yes, Amazon.com AMZN flips hundreds of billions of dollars worth of products every yearand its revenues are on a tear. But Amazon turns only a sliver of that into profits.
In the past year, Amazons store generated a record $282 billion in revenue from Amazon.com. That translated to just $5.6 billion in profitskeep in mind that was Amazon.coms most profitable year ever.
Meanwhile, most of Amazons profits came from the lesser-known side of its business called Amazon Web Services (AWS), as you can see below:
Amazon's profits from AWS vs Amazon.com
Its Amazons cloud arm that is serving over a million companies across the world. You may have heard that AWS has something to do with storing data in the cloud. But its much,muchmore than that.
AWS is the operating system of the internet
To get an idea of how AWS works, take your computer as an example.
Like every other computer, it runs on an operating system such as Windows or MacOS, which comes with a set of programs. This software puts your computer resources to use and helps you carry out daily taskssuch as sending emails or sorting out your files.
Now, think of AWS as an operating system thats running not one, but hundreds of thousands of big computers (in tech lingo: servers). It gives companies nearly unlimited computing power and storageas well as tools to build and run their software on the internet.
The difference is that these big computers sit in Amazons warehouses. And companies work on them remotelyor via the cloud. In other words, AWS is like the operating system of the internet.
Amazons operating system now powers AI, blockchain, and other next-gen technologies
In 2003, when Amazons AWS first started out, it offered only a couple of basic cloud services for storage and mail. Today, this system offers an unmatched set of 175+ tools that help companies build software harnesses todays top technologies.
The list includes blockchain, VR, machine learning (AI), quantum computing, augmented reality (AR), and other technologies that are the building blocks of todays internet.
For example, Netflix is using AWS for more than simply storing and streaming its shows on the internet. Its also employing AWS machine learning technology to recommend movies and shows to you.
Youve also probably heard of Slack (WORK), the most popular messaging app for business. Slack recently announced it will use Amazons media technology to introduce video and audio calls on its app.
And its not just tech companies that are utilizing Amazons AWS tools.
Take GE Power. The worlds energy leader is using AWS analytics technology to store and sift through avalanches of data from its plants. Or Fidelity. Americas mutual fund giant experiments with Amazons VR technology to build VR chat rooms for its clients.
In a picture, Amazons AWS works like this:
How Amazon's AWS powers the internet
Amazons AWS is earning more and more... and more
Amazon is not the only company running a cloud service. Google, Microsoft MSFT , Alibibaba, IBM IBM , and other tech giants are all duking it out for a slice of this lucrative business. But Amazon is the biggest and most feature-rich.
Today, Amazon controls 33% of the market, leaving its closest competitors Microsoft (2nd with 18%) and Google (3rd with 9%) far behind in the dust. That means nearly one third of the internet is running on Amazons AWS.
And it doesnt appear that Amazon will step down from its cloud throne anytime soon. Amazons sales from AWS soared 10X in the past six years. And last year, Amazon reported a bigger sales gain from AWS (dollar-wise) than any other cloud company.
Heres the main takeaway for investors
If you are looking into Amazon stock, dont get caught up in the online shopping fuss.
For years, AWS has been the linchpin of Amazons business. And this invisible side of Amazon is where Amazons largest gears turn.
Problem is, AWS is like a black box. Amazon reports very little on its operations. So if you want to dig deeper, youll have to do your own research.
Youll also have to weigh a couple of risks before putting your money into Amazon stock:
Other than that, Amazon is an outstanding stock, killing it in one of the most lucrative businesses on the planet. And its proven to be resilient to Covid, whose spread could hit the markers again.
Get investing tips that make you go Hmm...
Every week, I put out a big picture story to help explain whats driving the markets. Subscribe here to get my analysis and stock picks right in your inbox.
Go here to read the rest:
How Amazon Quietly Powers The Internet - Forbes
- Scientists make 'magic state' breakthrough after 20 years without it, quantum computers can never be truly useful - Live Science - July 18th, 2025 [July 18th, 2025]
- D-Wave Quantum Skyrocketed Today. Is the Stock a Buy? - Yahoo Finance - July 18th, 2025 [July 18th, 2025]
- EIFO and the Novo Nordisk Foundation Acquire the Worlds Most Powerful Quantum Computer - Novo Nordisk Fonden - July 18th, 2025 [July 18th, 2025]
- Israel and US to forge $200m tech hub for AI and quantum science development - The Times of Israel - July 18th, 2025 [July 18th, 2025]
- Quantum code breaking? You'd get further with an 8-bit computer, an abacus, and a dog - theregister.com - July 18th, 2025 [July 18th, 2025]
- Is quantum computing the next big thing in stocks? - TheStreet - July 18th, 2025 [July 18th, 2025]
- What to do while pursuing the promise of quantum computing - Brookings - July 18th, 2025 [July 18th, 2025]
- Microsoft and Atom Computing Partner on Level 2 Quantum System for Nordic Users - The Quantum Insider - July 18th, 2025 [July 18th, 2025]
- Progress Toward Practical Areas of Quantum Technology - CSIS | Center for Strategic and International Studies - July 18th, 2025 [July 18th, 2025]
- Hybrid classical and quantum computing for enhanced glioma tumor classification using TCGA data - Nature - July 18th, 2025 [July 18th, 2025]
- Oxford Ionics And Iceberg Quantum Partner to Accelerate Fault-Tolerant Quantum Computing - The Quantum Insider - July 18th, 2025 [July 18th, 2025]
- Are We Truly Prepared for the Era of Quantum Computing? - Security Boulevard - July 18th, 2025 [July 18th, 2025]
- New quantum computer with great potential to boost Nordic research and innovation - Novo Nordisk Fonden - July 18th, 2025 [July 18th, 2025]
- Launching a Quantum Computer, Photonics Meets Electronics in a First-of-its-Kind Chip - Photonics Spectra - July 18th, 2025 [July 18th, 2025]
- Huge investment to build in Denmark the first level-2 quantum computer - The Copenhagen Post - July 18th, 2025 [July 18th, 2025]
- D-Wave Quantum Skyrocketed Today. Is the Stock a Buy? - The Motley Fool - July 18th, 2025 [July 18th, 2025]
- Oxford Ionics and Iceberg Quantum Partner to Design Fault-Tolerant Quantum Architecture - Quantum Computing Report - July 18th, 2025 [July 18th, 2025]
- Cornell And IBM Demonstrate Error-Resistant Quantum Computing Advance - Quantum Zeitgeist - July 18th, 2025 [July 18th, 2025]
- Quobly and Inria Partner to Advance Scalable, Sovereign Quantum Systems in France - Quantum Computing Report - July 18th, 2025 [July 18th, 2025]
- How IBM and Moderna (MRNA) Are Using Quantum Computing to Design Vaccines Faster - TipRanks - July 18th, 2025 [July 18th, 2025]
- Why D-Wave Quantum Stock Skyrocketed 74.3% in the First Half of 2025 -- and What Comes Next - The Motley Fool - July 18th, 2025 [July 18th, 2025]
- D-Wave Quantum Skyrocketed Today. Is the Stock a Buy? - Nasdaq - July 18th, 2025 [July 18th, 2025]
- IBM and Moderna Team Up on Quantum Study. What It Means for the World of Medicine. - Barron's - July 18th, 2025 [July 18th, 2025]
- Silicon Spin Qubits: Scaling Toward the Million-Qubit Era - EE Times Europe - July 18th, 2025 [July 18th, 2025]
- Why D-Wave Quantum Stock Skyrocketed 74.3% in the First Half of 2025 -- and What Comes Next - The Globe and Mail - July 18th, 2025 [July 18th, 2025]
- Universal Quantum and TUHH Partner on Scalable Quantum Software for 100 000-Qubit Machines - The Quantum Insider - July 16th, 2025 [July 16th, 2025]
- IonQ, D-Wave, and Rigetti Face Off Ahead of Earnings Whos Nearest to Commercial Breakthrough? - TipRanks - July 16th, 2025 [July 16th, 2025]
- Granite Geek: As quantum mechanics turns 100, it is sneaking into everyday life - Monadnock Ledger-Transcript - July 16th, 2025 [July 16th, 2025]
- The rise of women in quantum science in India and the legacy of Satyendra Nath Bose - Physics World - July 16th, 2025 [July 16th, 2025]
- BDx and Anyon launch hybrid quantum AI testbed in Singapore - Light Reading - July 16th, 2025 [July 16th, 2025]
- What Is RSA Encryption, And Did China Really Break It? - SlashGear - July 14th, 2025 [July 14th, 2025]
- D-Wave Quantum (QBTS) Loses 11.8% as 2 Tech Giants Could Threaten its Competitive Edge - MSN - July 14th, 2025 [July 14th, 2025]
- Cracking the quantum code: light and glass are set to transform computing - Cyprus Mail - July 14th, 2025 [July 14th, 2025]
- Revolutionary Quantum-AI Drone Tech Transforms Military Defense and Weather Forecasting - Stock Titan - July 12th, 2025 [July 12th, 2025]
- How Post-Quantum Cryptography Affects Security and Encryption Algorithms - Cisco Blogs - July 12th, 2025 [July 12th, 2025]
- QUANTUM COMPUTING INVESTIGATION INITIATED BY FORMER LOUISIANA ATTORNEY GENERAL: Kahn Swick & Foti, LLC Investigates the Officers and Directors of... - July 12th, 2025 [July 12th, 2025]
- TRIUMF, Perimeter Institute, and D-Wave Collaborate on Quantum-AI for Particle Physics Simulation - Quantum Computing Report - July 12th, 2025 [July 12th, 2025]
- The next leap for the technology sector: quantum computing - TechRadar - July 12th, 2025 [July 12th, 2025]
- Forget ransomware - most firms think quantum computing is the biggest security risk to come - MSN - July 12th, 2025 [July 12th, 2025]
- Quantum Computers Could Break Encryption : Are We Ready for the Digital Apocalypse? - Geeky Gadgets - July 12th, 2025 [July 12th, 2025]
- Texas wants to lead in the next big thing in computing. But is it too late? - Austin American-Statesman - July 12th, 2025 [July 12th, 2025]
- Post-quantum cryptographic inventory the latest PQC buzzword and why you need to know it - Cybernews - July 12th, 2025 [July 12th, 2025]
- Billionaires Are Buying This Quantum Computing Stock Hand Over Fist (Hint: It's Not IonQ or D-Wave Quantum) - Yahoo Finance - July 10th, 2025 [July 10th, 2025]
- Is Rigetti Computing the Top Quantum Computing Stock for the Second Half of 2025? - Nasdaq - July 10th, 2025 [July 10th, 2025]
- CHAMP-ION Project: Why Europe Isnt Backing Down in the Quantum Computer Race - embedded.com - July 10th, 2025 [July 10th, 2025]
- Tiny quantum drumhead sends sound with 1-in-a-million losspoised to rewrite tech - ScienceDaily - July 10th, 2025 [July 10th, 2025]
- The Q-Day Countdown: What It Is and Why You Should Care - Security Boulevard - July 10th, 2025 [July 10th, 2025]
- Finland breaks quantum record with 1-millisecond qubit coherence - Interesting Engineering - July 10th, 2025 [July 10th, 2025]
- Quantum Breakthrough: Qubit Coherence Hits Record Millisecond Milestone - The Debrief - July 10th, 2025 [July 10th, 2025]
- Japan needs to take the quantum-technology leap - The Japan Times - July 10th, 2025 [July 10th, 2025]
- NPL quantum circuits imaging could unlock stable quantum computers - Innovation News Network - July 8th, 2025 [July 8th, 2025]
- Should You Buy Rigetti Computing Stock for Less Than $15? - The Motley Fool - July 8th, 2025 [July 8th, 2025]
- Individual defects in superconducting quantum circuits imaged for the first time - Phys.org - July 8th, 2025 [July 8th, 2025]
- What's the Story? Quantum computing meets telecom - Light Reading - July 8th, 2025 [July 8th, 2025]
- Photonic powerhouse: Light is driving the quantum revolution - Laser Focus World - July 8th, 2025 [July 8th, 2025]
- Quantum Computers Pose Long-Term Threat to Bitcoin Security - AInvest - July 8th, 2025 [July 8th, 2025]
- Quantum Computing 'Q-Day' Threatens Bitcoin (BTC) & Ethereum (ETH) as Singapore Tightens Crypto Regulations - Blockchain News - July 8th, 2025 [July 8th, 2025]
- 2 Top Quantum Computing Stocks to Buy in July - Yahoo Finance - July 6th, 2025 [July 6th, 2025]
- Cracking the quantum code: light and glass are set to transform computing - ScienceBlog.com - July 6th, 2025 [July 6th, 2025]
- Helgoland 2025: the inside story of what happened on the quantum island - Physics World - July 6th, 2025 [July 6th, 2025]
- A shortcut to quantum randomness: Hacked qubit blocks achieve the unexpected - Interesting Engineering - July 6th, 2025 [July 6th, 2025]
- Physicists use 5,564-qubit quantum computer to model the death of our universe - The Brighter Side of News - July 6th, 2025 [July 6th, 2025]
- Small, room-temperature quantum computers that use light on the horizon after breakthrough, scientists say - Live Science - July 4th, 2025 [July 4th, 2025]
- Quantum computers are surprisingly random but that's a good thing - New Scientist - July 4th, 2025 [July 4th, 2025]
- Quantum computers could bring lost Bitcoin back to life: Heres how - Cointelegraph - July 4th, 2025 [July 4th, 2025]
- The Quantum Computing Industry Is Crowded. Why D-Wave, IonQ, and Rigetti Are a Buy. - Barron's - July 4th, 2025 [July 4th, 2025]
- Quantum tech is coming and with it a risk of cyber doomsday - politico.eu - July 4th, 2025 [July 4th, 2025]
- Quantum Annealers From D-Wave Optimise Robotic Inspection Of Industrial Components. - Quantum Zeitgeist - July 4th, 2025 [July 4th, 2025]
- The Best Quantum Computing Stocks to Buy Right Now - Yahoo Finance - July 4th, 2025 [July 4th, 2025]
- QBTS: With Its Quantum Leap Priced In, Jump In On A Dip (NYSE:QBTS) - Seeking Alpha - July 4th, 2025 [July 4th, 2025]
- Buy this quantum computing stock that can rally more than 30%, Cantor says - CNBC - July 4th, 2025 [July 4th, 2025]
- A new tech race is on. Can Europe learn from the ones it lost? - politico.eu - July 4th, 2025 [July 4th, 2025]
- Rigetti Computing: Cantor's Bullish Call May Be Just the Start - MarketBeat - July 4th, 2025 [July 4th, 2025]
- The Quantum Data Center of the Future: Q&A - IoT World Today - July 4th, 2025 [July 4th, 2025]
- Quantum Computing Investments: A Once-in-a-Lifetime Opportunity? - Yahoo Finance - July 2nd, 2025 [July 2nd, 2025]
- Q&A: Companies are racing to develop the first useful quantum computerultracold neutral atoms could be the key - Phys.org - July 2nd, 2025 [July 2nd, 2025]
- Quantum Computers Just Reached the Holy Grail No Assumptions, No Limits - SciTechDaily - July 2nd, 2025 [July 2nd, 2025]
- Scientists Achieve Teleportation Between Quantum Computers for the First Time Ever - MSN - July 2nd, 2025 [July 2nd, 2025]
- The IBM Comeback Story That's Making Wall Street Pay Attention - Investopedia - July 2nd, 2025 [July 2nd, 2025]
- Scientists Achieve Teleportation Between Quantum Computers for the First Time Ever - The Daily Galaxy - July 2nd, 2025 [July 2nd, 2025]