Palihapitiya: Amazon AWS Will Be $1.5 Trillion Business By 2025
Chamath Palihapitiya, the CEO of Social Capital, may have solidified his status as being the top Amazon.com, Inc. (NASDAQ: AMZN) bull.
Speaking at the Ira Sohn conference, Palihapitiya slapped a $3 trillion valuation on Amazon's stock within a decade from now. By segment, he valued Amazon's retail division at $1 trillion, Amazon Web Services at $1.5 trillion, and assigned an additional $0.5 trillion to the incremental value that the company's CEO Jeff Bezos brings to the table.
Palihapitiya defended his luscious valuation of Amazon's retail business by noting that if investors assign Costco Wholesale Corporation (NASDAQ: COST)'s current multiple, the business is worth around $1 trillion alone. Meanwhile, the AWS segment should be considered as a tax on the internet and innovation in the sense that Amazon will corner the market and essentially hold a monopoly.
"There are going to be unbelievable number of losers when AWS gets to scale," he said.
Bottom line, Palihapitiya argued Amazon is a multi-trillion dollar monopoly that is hiding in plain sight and there is 10x upside to the company's stock from its current level.
Shares of Amazon were trading higher by around 0.16 percent mid-Wednesday afternoon.
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