Amazon operates Amazon Web Services, commonly known as AWS, a major contributor to the company’s market value.
AWS provides computing power, data storage, databases, networking, analytics, and other services over the internet. It serves startups, governments, universities, and large enterprises, allowing them to rent infrastructure rather than build every data center themselves.
Amazon launched AWS services in the mid-2000s after developing internal systems to handle its retail operations. The cloud division became strategically important because it generated substantial operating income and diversified Amazon beyond online shopping.
Amazon’s market capitalization reflects the expected future value of all its businesses, including e-commerce, advertising, logistics, devices, entertainment, and AWS. It should not be confused with revenue or profit: market value is determined by the share price and the number of outstanding shares.