New charts are here - The king of cloud ☁️
Azure vs AWS, who's winning...
Microsoft and Amazon are the two largest cloud brands in the world. In this newsletter, we take a closer look at these 2 behemoths.
Both returned handsome profits to shareholders over the long term.
How do tech firms make money? The biggest sources are consumer electronics (Apple and Samsung), e-commerce (Amazon) and Ads (Google). But these 3 are fairly old-school business models which have been around for decades. Cloud is ranking as the 4th biggest source among big tech firms, but it’s catching up very quickly.
How does Microsoft make money then? Cloud is by far the biggest single unit, followed by its traditional products like Office365 and Windows OS.
How does Amazon make its money? E-commerce is by far the largest, totalling $222B from its own stores, and $103B from third parties who sell through Amazon. Cloud is coming in at 3rd, at $62B.
AWS and Azure are by far the top 2 cloud players in the market, at over 50% of the total market.
It’s impressive how quickly Amazon is catching up with Microsoft on cloud revenue run-rate.
Finally, who’s winning on quality, value and momentum? Using our quant rankings, Microsoft wins by a big margin on quality. Both stocks are expensive on value. Amazon is doing poorly on momentum.
Have a great weekend!
Truman & Amara 🙌
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