Amazon's Cloud Services Could Add $1 Billion To Revenue, Says Pacific Crest
Pacific Crest's Brent Bracelin recently attended Amazon.com, Inc. (NASDAQ: AMZN)'s Amazon Web Services (AWS) Summit and remained impressed with the company's ability to capitalize on the multi-year secular shift to cloud platforms.
The event clearly showcased AWS's "sustaining momentum within large enterprises," Bracelin said. He then went on to highlight the following names, which illustrate that very point:
- Johnson & Johnson (NYSE: JNJ)
- General Electric Company (NYSE: GE)
- CapitalOne Financial Corp. (NYSE: COF)
- Royal Dutch Sell plc (ADR) (NYSE: RDS-A)
- Netflix, Inc. (NASDAQ: NFLX)
- Adobe Systems Incorporated (NASDAQ: ADBE)
- Dow Jones Industrial Average 2 Minute (INDEX: .DJI)
Amazon outlined the best practices on hybrid cloud systems as a stepping stone into the public cloud, according to Bracelin. One notable new initiative included adding a new data migration service for Teradata Corporation (NYSE: TDC) and Oracle Corporation (NYSE: ORCL)'s data warehouse environments.
"Bottom line: the overall tone and conversations with third-party partners confirmed that cloud demand trends for AWS remain robust," stated the Pacific Crest analyst. The feedback further supported Bracelin's $1 billion annual increase in revenue for AWS.
The analyst maintains his Overweight rating and $820.00 price target.
At time of writing, Amazon was up 0.50 percent on the day at $746.67.
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Latest Ratings for AMZN
|Oct 2016||Goldman Sachs||Maintains||Buy|
|Oct 2016||Credit Suisse||Maintains||Outperform|
|Oct 2016||SunTrust Robinson Humphrey||Maintains||Neutral|
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