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Amazon (AMZN) Boosts Reach in Latin America With Mexico Region
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Amazon (AMZN - Free Report) continues to dominate the global cloud computing space on the back of increasing number of availability zones and regions served by Amazon Web Services (“AWS”).
This is evident from AWS’s latest plans to launch an AWS infrastructure Region in Mexico by early 2025.
The latest move bodes well for the company’s long-term commitment to Latin America. In this regard, Amazon intends to invest more than $5 billion in Mexico over 15 years.
Notably, AWS Mexico (Central) Region, which will be comprised three availability zones, is expected to aid AWS in addressing the growing demand for cloud services in Latin America.
The region will help AWS in delivering low latency and offering access to its robust cloud services portfolio and technology, including AI, machine learning, data analytics and the Internet of Things to customers.
Further, it will allow customers to run critical workloads seamlessly and store data securely in Mexico.
Thus, the latest move is expected to enable AWS to gain traction among startups, enterprises, no-profit and government organizations.
Already Aeromexico, Banco Santander Mexico, Cinepolis and Vector Casa de Bolsa, to name a few, have shown interest in the new Mexico region.
In addition to AWS Mexico (Central) Region, the company recently launched of its second infrastructure region in Canada - AWS Canada West (Calgary) AWS. This is located in Calgary.
Apart from North America, AWS’ increasing Regions in Europe remain a plus. The company operates seven AWS Regions and 21 availability zones across Europe in Frankfurt, Ireland, London, Milan, Paris, Stockholm and Zurich.
Also, AWS’ growing interest in the Asia-Pacific region remains noteworthy. It plans to launch an AWS infrastructure region in Malaysia, in which it strives to invest around $6 billion by 2037 and support job creation in the country.
The company’s launch of its second infrastructure region in Melbourne, Australia, and an infrastructure region in Israel, located in Tel Aviv, namely, AWS Israel (Tel Aviv) Region remains noteworthy. . Currently, AWS has 105 Availability Zones across 33 geographic regions. It further plans to launch 15 more Availability Zones and five more AWS Regions in Malaysia, Mexico, New Zealand, Thailand, and the AWS European Sovereign Cloud.
Key Prospects, Competitive Scenario
An increasing number of regions and availability zones across the globe is likely to drive AWS’ customer momentum, which in turn will likely boost its financial performance and aid Amazon in capitalizing on the prospects of the global cloud market. This is likely to instill investors’ optimism in the stock in the near term.
In the fourth quarter of 2023, AWS generated revenues of $24.2 billion (14% of total sales), which grew 13% year over year.
Moreover, AWS has been the key catalyst for Amazon whose shares have gained 83.7% in the past year.
This apart, Amazon’s aggressive expansion efforts are expected to continue aiding its competitive prowess against its strong peers, such as Microsoft (MSFT - Free Report) and Alphabet’s (GOOGL - Free Report) Google. Both companies are also leaving no stone unturned to boost presence in this promising market.
Microsoft Azure became the key driver for Microsoft. MSFT is currently riding on the robust adoption of Microsoft Azure’s cloud offerings. Microsoft Azure's increasing number of availability zones and regions across the globe and its strength in the consumption-based business are likely to continue driving MSFT's cloud momentum in the near term.
Similarly, Google Cloud contributes substantially to Alphabet's total revenues. Expanding data centers, availability zones and cloud regions are expected to keep boosting Alphabet's cloud position.
Nevertheless, AWS, with its strengthening global infrastructure, continues to maintain its dominant position in the cloud market.
Per the latest Synergy Research Group data, AWS accounted for 31% of the global cloud infrastructure services market in fourth-quarter 2023, maintaining its leading position in the booming cloud market.
Microsoft Azure, the second-largest cloud service provider, accounted for 24% of the market.
Alphabet’s Google Cloud acquired 11% share of the market, making it the third-largest cloud provider.
Zacks Rank & Another Stock to Consider
Currently, Amazon sports a Zacks Rank #1 (Strong Buy).
Image: Bigstock
Amazon (AMZN) Boosts Reach in Latin America With Mexico Region
Amazon (AMZN - Free Report) continues to dominate the global cloud computing space on the back of increasing number of availability zones and regions served by Amazon Web Services (“AWS”).
This is evident from AWS’s latest plans to launch an AWS infrastructure Region in Mexico by early 2025.
The latest move bodes well for the company’s long-term commitment to Latin America. In this regard, Amazon intends to invest more than $5 billion in Mexico over 15 years.
Notably, AWS Mexico (Central) Region, which will be comprised three availability zones, is expected to aid AWS in addressing the growing demand for cloud services in Latin America.
The region will help AWS in delivering low latency and offering access to its robust cloud services portfolio and technology, including AI, machine learning, data analytics and the Internet of Things to customers.
Further, it will allow customers to run critical workloads seamlessly and store data securely in Mexico.
Thus, the latest move is expected to enable AWS to gain traction among startups, enterprises, no-profit and government organizations.
Already Aeromexico, Banco Santander Mexico, Cinepolis and Vector Casa de Bolsa, to name a few, have shown interest in the new Mexico region.
Amazon.com, Inc. Price and Consensus
Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote
Increasing Regions & Availability Zones
In addition to AWS Mexico (Central) Region, the company recently launched of its second infrastructure region in Canada - AWS Canada West (Calgary) AWS. This is located in Calgary.
Apart from North America, AWS’ increasing Regions in Europe remain a plus. The company operates seven AWS Regions and 21 availability zones across Europe in Frankfurt, Ireland, London, Milan, Paris, Stockholm and Zurich.
Also, AWS’ growing interest in the Asia-Pacific region remains noteworthy. It plans to launch an AWS infrastructure region in Malaysia, in which it strives to invest around $6 billion by 2037 and support job creation in the country.
The company’s launch of its second infrastructure region in Melbourne, Australia, and an infrastructure region in Israel, located in Tel Aviv, namely, AWS Israel (Tel Aviv) Region remains noteworthy.
.
Currently, AWS has 105 Availability Zones across 33 geographic regions. It further plans to launch 15 more Availability Zones and five more AWS Regions in Malaysia, Mexico, New Zealand, Thailand, and the AWS European Sovereign Cloud.
Key Prospects, Competitive Scenario
An increasing number of regions and availability zones across the globe is likely to drive AWS’ customer momentum, which in turn will likely boost its financial performance and aid Amazon in capitalizing on the prospects of the global cloud market. This is likely to instill investors’ optimism in the stock in the near term.
In the fourth quarter of 2023, AWS generated revenues of $24.2 billion (14% of total sales), which grew 13% year over year.
Moreover, AWS has been the key catalyst for Amazon whose shares have gained 83.7% in the past year.
This apart, Amazon’s aggressive expansion efforts are expected to continue aiding its competitive prowess against its strong peers, such as Microsoft (MSFT - Free Report) and Alphabet’s (GOOGL - Free Report) Google. Both companies are also leaving no stone unturned to boost presence in this promising market.
Microsoft Azure became the key driver for Microsoft. MSFT is currently riding on the robust adoption of Microsoft Azure’s cloud offerings. Microsoft Azure's increasing number of availability zones and regions across the globe and its strength in the consumption-based business are likely to continue driving MSFT's cloud momentum in the near term.
Similarly, Google Cloud contributes substantially to Alphabet's total revenues. Expanding data centers, availability zones and cloud regions are expected to keep boosting Alphabet's cloud position.
Nevertheless, AWS, with its strengthening global infrastructure, continues to maintain its dominant position in the cloud market.
Per the latest Synergy Research Group data, AWS accounted for 31% of the global cloud infrastructure services market in fourth-quarter 2023, maintaining its leading position in the booming cloud market.
Microsoft Azure, the second-largest cloud service provider, accounted for 24% of the market.
Alphabet’s Google Cloud acquired 11% share of the market, making it the third-largest cloud provider.
Zacks Rank & Another Stock to Consider
Currently, Amazon sports a Zacks Rank #1 (Strong Buy).
Another top-ranked stocks in the broader technology sector is CrowdStrike (CRWD - Free Report) , which flaunts a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of CrowdStrike have gained 25.7% in the year-to-date period. The long-term earnings growth rate for CRWD is 36.07%