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Amazon Web Services CEO Sells $11.2 Million Worth Shares

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World leading cloud platform Amazon Web Services’ (“AWS”) CEO, Andrew R Jassy, recently sold 14,000 Amazon.com, Inc. (AMZN - Free Report) shares worth $11.2 million. The trade dates back to Sep 22, at an average price of $800.

Lately, Amazon shares have been moving higher. The company returned 53.7% in the past one year and has added roughly 19.2% year to date. In the last reported second-quarter earnings, the company’s EPS was $1.78, way ahead of the Zacks Consensus Estimate of $1.14.

The success of Amazon’s multi-faceted cloud computing service significantly boosted its second-quarter results. Cloud infrastructure service AWS contributed $2.89 billion to revenues, taking the revenue run rate to over $11.5 billion, representing sequential and year-over-year growth of 12.5% and 58.2%, respectively.

Amazon generated revenue of $30.40 billion, up 4.4% sequentially and 31.1% from the year-ago quarter. Excluding the $166 million favorable FX impact, revenues were up 30% year over year. This was better than the guided range of $28.0–$30.5 billion (up 0.4% sequentially and 26.2% year over year at the mid-point) and ahead of the Zacks Consensus Estimate of $29.73 billion.
 
Launched a decade ago, AWS provides cloud-based storage and templates for companies to quickly boost their computing capabilities. It is the biggest public cloud in the market. The popularity of AWS has shot up over the past few years. In 2015, revenues from Web Services grew 70% to $7.88 billion from $4.64 billion in 2014. Margins in the e-commerce can be thin, and AWS has proven to be much more profitable for the company.

But competition in the cloud market is intensifying and so is the cloud storage war from the likes of Microsoft (MSFT - Free Report) and Google (GOOGL - Free Report) . In spite of this rivalry, we remain extremely positive about AWS’ growth prospects.

Stocks to Consider

Amazon currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the industry is Stamps.com Inc. , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Stamps.com witnessed a 0.08% dip in its last day’s stock price. On average, the company delivered a positive earnings surprise of 61.42% in the trailing four quarters.

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