AWS is not a separate publicly traded company. As Amazon's cloud computing division, it operates under Amazon's stock (AMZN) on NASDAQ.
Amazon Web Services (AWS) contributes to Amazon's revenue. In 2023, AWS generated $90 billion, accounting for about 16% of Amazon's total revenue. When investors buy Amazon stock, they're indirectly investing in AWS's performance.
AWS was launched internally in 2006 and grew to become the market leader in cloud infrastructure services. While some speculate about an AWS spin-off, Amazon CEO Andy Jassy has stated there are no current plans to separate AWS from Amazon.
Most large tech companies keep their profitable divisions internal rather than spinning them off. For example, Google's parent company Alphabet keeps YouTube and Google Cloud under its umbrella despite their substantial revenues.
Amazon reports AWS results in its quarterly earnings as a separate segment. This allows investors to track AWS's growth independently from Amazon's other businesses like online retail and advertising.
In Q1 2024, AWS reported $22.3 billion in revenue, a 17% year-over-year increase. This transparency helps investors evaluate AWS's performance within Amazon's financial picture.
Many people assume AWS has its own stock ticker because it's such a large and independent operation. However, AWS remains part of Amazon's corporate structure. The closest comparison would be how Microsoft's cloud division Azure operates - as a major business unit within its parent company.