Amazon (AMZN) Expands AWS Clientele With Exscientia Deal
Amazon’s stock (AMZN) has seen a significant rally of 28.5% year to date, surpassing the industry growth rate of 18.8%. This surge is attributed to the strong performance of Amazon Web Services (AWS), the company’s cloud computing arm, which is attracting a solid customer base and driving revenue growth.
One of the latest collaborations that highlight the efficiency and reliability of AWS is with Exscientia EXAI. Exscientia is leveraging AWS’s artificial intelligence (AI) and machine learning (ML) services to accelerate drug discovery and automation processes at a lower cost. By using generative AI models from AWS, Exscientia is able to design drug candidates more efficiently and has deployed generative AI in its DesignStudio. The company is also incorporating robotic automation in its lab works through this partnership.
The expanding clientele of AWS is evident from various recent collaborations. Smartsheet, Formula 1 (F1), FWD Group Holdings Limited, SAP, NinjaTech AI, CrowdStrike, Brightcove, Zilch, and others have all partnered with AWS to leverage its generative AI solutions, cloud services, and AI-powered tools for various business purposes ranging from cloud security to customer service improvement.
AWS continues to drive top-line growth for Amazon, with revenues for the first quarter of 2024 reaching $25.04 billion, accounting for 18% of the total sales and growing by 17% year over year. The Zacks Consensus Estimate for 2024 AWS revenues is projected to be $106.5 billion, indicating a 17.3% growth.
Overall, the strengthening performance of AWS is proving to be a key catalyst for Amazon’s financial performance. The company is expected to see a year-over-year revenue increase of 11% in 2024, with earnings per share growing by 57.9%. As AWS expands its customer base and portfolio offerings, Amazon is poised to gain a competitive edge in the cloud computing market against rivals like Microsoft and Google.
In conclusion, Amazon’s strategic focus on AWS and its expanding clientele through partnerships like the one with Exscientia are driving growth prospects for the company. With a strong foothold in cloud services and a growing presence in various industries, Amazon is well-positioned for continued success in the future.
