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Amazon (AMZN) Expands in APAC With AWS-Australia Partnership
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Amazon’s (AMZN - Free Report) shares have gained 31.2% on a year-to-date basis, outperforming the Zacks Internet Commerce industry’s return of 22.4%. The e-commerce giant is riding on the solid momentum in its cloud computing arm, Amazon Web Services (“AWS”).
AWS is benefiting from the growing customer momentum across the world on the back of its strong cloud computing capabilities. Its strengthening cloud infrastructure in various emerging and developed nations is a major positive.
The company recently joined forces with the Australia government to build ‘Top Secret’ AWS Cloud (TS Cloud) for Australia’s defense and intelligence agencies. This initiative will allow agencies to host sensitive information securely, which, in turn, will help Australia improve the nation’s cyber capabilities and deepen security cooperation with the United States.
The Australia government plans to invest AU$2 billion ($1.3 billion) over the next decade in the new cloud system. Under the agreement, Amazon will construct three facilities in the country.
TS Cloud will make the sharing of classified data between Australia’s National Intelligence Community and the Australian Defence Force seamless. It will also power the nation’s security with AI and machine learning.
The latest deal underscores AWS's global experience, security, performance and ability to dedicate thousands of engineers to a project.
Moreover, AWS’s commitment to driving innovation, economic growth and digital transformation across Australia reaches a new height with this deal. Last year, it launched its second infrastructure region in Melbourne, Australia. Through the AWS Asia Pacific (Melbourne) region, AWS strives to invest $4.5 billion by 2037 and support 2,500 full-time jobs annually.
Year-to-Date Price Performance
Image Source: Zacks Investment Research
Expanding Asia Pacific (APAC) Presence Aids Prospects
AWS has strengthened its footprint in the APAC region on the back of the latest deal.
Per a Research and Markets report, the cloud market in the APAC region is expected to witness a CAGR of 15.1% between 2023 and 2030. Infrastructure-as-a-Service, Platform-as-a-Service and Software-as-a-Service are gaining strong momentum in APAC.
Amazon is well-poised to capitalize on this growth opportunity on the back of its expanding APAC footprint.
AWS recently announced plans to launch an AWS infrastructure region in Taiwan by early 2025. The region will be known as the AWS Asia Pacific (Taipei) Region.
The cloud giant is also gearing up to launch an infrastructure region in the Kingdom of Saudi Arabia in 2026.
AWS plans to launch an infrastructure region in Malaysia, in which it strives to invest $6 billion by 2037 and support job creation in the country.
It intends to pump in 2.26 trillion yen ($15.24 billion) in Japan by 2027. With this investment, AWS strives to boost its cloud infrastructure across the country, especially in Tokyo and Osaka.
AWS plans to open a region in Bangkok, Thailand, and set up an infrastructure region in Auckland, New Zealand, comprising three availability zones.
The launch of an infrastructure region in Israel, located in Tel Aviv, namely, AWS Israel (Tel Aviv) Region, is another positive.
Expanding presence in the promising APAC region is expected to aid the performance of AWS, which, in turn, will drive Amazon’s overall performance in the long run.
The Zacks Consensus Estimate for 2024 revenues is pegged at $638.24 billion, which indicates a year-over-year increase of 11%. The consensus mark for 2024 earnings has been revised upward by 0.9% to $4.58 per share over the past 60 days. The figure indicates year-over-year growth of 57.9%.
Amazon’s peers like Microsoft (MSFT - Free Report) , Alphabet (GOOGL - Free Report) and Alibaba (BABA - Free Report) are also leaving no stone unturned to expand their presence, given the booming scenario in APAC.
Microsoft’s Azure is gearing up for the opening of five data centers in APAC, namely South-Central India, Indonesia Central, Malaysia West, New Zealand North and Taiwan North, which will be located in Hyderabad, Jakarta, Kuala Lumpur, Auckland and Taipei, respectively.
Microsoft Azure also plans to launch a Saudi Arabia Central region.
Meanwhile, Alphabet’s Google launched a data center in Japan in 2023, marking its third such establishment in Asia. The facility is located in Inzai, Chiba. Google’s opening of a data center in Singapore is also noteworthy.
Google’s opening of cloud regions in India’s New Delhi and Australia’s Melbourne last year is an uptrend. The search giant’s opening of cloud regions located in Doha, Qatar, and Dammam, Saudi Arabia, is another positive.
Alibaba is hugely investing in expanding its presence in the cloud market of the underlined region. In regard to APAC, the company has data centers located in Singapore, Australia, Philippines, India, Thailand, Japan, Malaysia, South Korea and Indonesia.
Conclusion
Amazon’s strength in AWS, which is riding on expanding clientele, strong partner base and growing global presence, is expected to boost its long-term prospects. Its deepening focus on generative AI is a major plus. Growing capabilities in grocery, pharmacy, healthcare and autonomous driving are other positives.
Amazon currently has a Value Score of B, which makes it an attractive pick for investors.
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Amazon (AMZN) Expands in APAC With AWS-Australia Partnership
Amazon’s (AMZN - Free Report) shares have gained 31.2% on a year-to-date basis, outperforming the Zacks Internet Commerce industry’s return of 22.4%. The e-commerce giant is riding on the solid momentum in its cloud computing arm, Amazon Web Services (“AWS”).
AWS is benefiting from the growing customer momentum across the world on the back of its strong cloud computing capabilities. Its strengthening cloud infrastructure in various emerging and developed nations is a major positive.
The company recently joined forces with the Australia government to build ‘Top Secret’ AWS Cloud (TS Cloud) for Australia’s defense and intelligence agencies. This initiative will allow agencies to host sensitive information securely, which, in turn, will help Australia improve the nation’s cyber capabilities and deepen security cooperation with the United States.
The Australia government plans to invest AU$2 billion ($1.3 billion) over the next decade in the new cloud system. Under the agreement, Amazon will construct three facilities in the country.
TS Cloud will make the sharing of classified data between Australia’s National Intelligence Community and the Australian Defence Force seamless. It will also power the nation’s security with AI and machine learning.
The latest deal underscores AWS's global experience, security, performance and ability to dedicate thousands of engineers to a project.
Moreover, AWS’s commitment to driving innovation, economic growth and digital transformation across Australia reaches a new height with this deal. Last year, it launched its second infrastructure region in Melbourne, Australia. Through the AWS Asia Pacific (Melbourne) region, AWS strives to invest $4.5 billion by 2037 and support 2,500 full-time jobs annually.
Year-to-Date Price Performance
Image Source: Zacks Investment Research
Expanding Asia Pacific (APAC) Presence Aids Prospects
AWS has strengthened its footprint in the APAC region on the back of the latest deal.
Per a Research and Markets report, the cloud market in the APAC region is expected to witness a CAGR of 15.1% between 2023 and 2030. Infrastructure-as-a-Service, Platform-as-a-Service and Software-as-a-Service are gaining strong momentum in APAC.
Amazon is well-poised to capitalize on this growth opportunity on the back of its expanding APAC footprint.
AWS recently announced plans to launch an AWS infrastructure region in Taiwan by early 2025. The region will be known as the AWS Asia Pacific (Taipei) Region.
The cloud giant is also gearing up to launch an infrastructure region in the Kingdom of Saudi Arabia in 2026.
AWS plans to launch an infrastructure region in Malaysia, in which it strives to invest $6 billion by 2037 and support job creation in the country.
It intends to pump in 2.26 trillion yen ($15.24 billion) in Japan by 2027. With this investment, AWS strives to boost its cloud infrastructure across the country, especially in Tokyo and Osaka.
AWS plans to open a region in Bangkok, Thailand, and set up an infrastructure region in Auckland, New Zealand, comprising three availability zones.
The launch of an infrastructure region in Israel, located in Tel Aviv, namely, AWS Israel (Tel Aviv) Region, is another positive.
Expanding presence in the promising APAC region is expected to aid the performance of AWS, which, in turn, will drive Amazon’s overall performance in the long run.
The Zacks Consensus Estimate for 2024 revenues is pegged at $638.24 billion, which indicates a year-over-year increase of 11%. The consensus mark for 2024 earnings has been revised upward by 0.9% to $4.58 per share over the past 60 days. The figure indicates year-over-year growth of 57.9%.
Aggressive Efforts Aid Competitive Prowess
Amazon, which currently carries a Zacks Rank #2 (Buy), is expected to remain at the top of the competition graph on the back of aggressive expansion efforts in APAC. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Amazon’s peers like Microsoft (MSFT - Free Report) , Alphabet (GOOGL - Free Report) and Alibaba (BABA - Free Report) are also leaving no stone unturned to expand their presence, given the booming scenario in APAC.
Microsoft’s Azure is gearing up for the opening of five data centers in APAC, namely South-Central India, Indonesia Central, Malaysia West, New Zealand North and Taiwan North, which will be located in Hyderabad, Jakarta, Kuala Lumpur, Auckland and Taipei, respectively.
Microsoft Azure also plans to launch a Saudi Arabia Central region.
Meanwhile, Alphabet’s Google launched a data center in Japan in 2023, marking its third such establishment in Asia. The facility is located in Inzai, Chiba. Google’s opening of a data center in Singapore is also noteworthy.
Google’s opening of cloud regions in India’s New Delhi and Australia’s Melbourne last year is an uptrend. The search giant’s opening of cloud regions located in Doha, Qatar, and Dammam, Saudi Arabia, is another positive.
Alibaba is hugely investing in expanding its presence in the cloud market of the underlined region. In regard to APAC, the company has data centers located in Singapore, Australia, Philippines, India, Thailand, Japan, Malaysia, South Korea and Indonesia.
Conclusion
Amazon’s strength in AWS, which is riding on expanding clientele, strong partner base and growing global presence, is expected to boost its long-term prospects. Its deepening focus on generative AI is a major plus. Growing capabilities in grocery, pharmacy, healthcare and autonomous driving are other positives.
Amazon currently has a Value Score of B, which makes it an attractive pick for investors.