- Redburn Ltd analyst sees Amazon.com, Inc (NASDAQ:AMZN) Amazon Web Services poised for a $3 trillion value, almost triple Amazon's present worth.
- Alex Haissl considers Amazon's cloud unit potent enough to split it from the massive, slower-growing online retail operation lest the latter fail to recover.
- He did not offer any timeline for reaching the $3 trillion mark.
- Haissl recommended a Buy on the stock with a $270 price target implying an upside of 150%.
- He saw AWS as better positioned than rivals run by Microsoft Corp (NASDAQ:MSFT) and Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) due to lower costs and better technology.
- AWS accounts for less than 20% of Amazon's revenue but will contribute all of its earnings this year, as per Haissl.
- AWS' revenue jumped 37% to $18.4 billion in the first quarter, even as the company's core e-commerce business saw a decline in sales.
- "There is no sugar-coating the weak performance" of online retail, he said, adding that "we do not think the business is structurally broken."
- Haissl rated Microsoft a Buy, Snowflake Inc (NYSE:SNOW) as Neutral, and has a Sell on MongoDB Inc (NASDAQ:MDB).
- Price Action: AMZN shares traded lower by 0.17% at $107.58 in the premarket on the last check Wednesday.
- Photo by Tony Webster via Flickr
