Amazon’s (AMZN - Free Report) is leaving no stone unturned to bolster presence in the cloud computing space on the back of its strengthening key offerings.
The company’s cloud computing arm, Amazon Web Services (AWS) made Amazon Textract generally available to customers.
With the aid of this service, the company is set to bring automation in the data extraction process. Amazon Textract, which is integrated with Machine Learning (ML), virtually analyzes all types of documents and enables seamless and automatic extraction of text and data.
It also recognizes a number of document formats related to healthcare, insurance and financial services fields, to name a few.
Further, it identifies text and data like tax information, values, line items and totals from tables and forms such as photographed receipt, W2, scanned inventory report.
Notably, the new service requires no human intervention and customization to accomplish its work and this bodes well for several companies and businesses which utilize manual data entry or simple optical character recognition software. Notably, the manual process is slow, expensive and requires human customization.
Consequently, AWS addresses these major challenges in data extraction process with the help of the new service.
Robust Services Portfolio to Aid Growth
We note that the latest move of Amazon expands AWS services portfolio.
Notably, the company has recently made AWS Ground Station available to general customers as well. Notably, this service aids customers in efficiently controlling satellites from AWS, download, store and process data from satellites into AWS Global Infrastructure Regions.
This provides a boost to the company’s initiatives in satellite data space.
Further, AWS made a new feature of its scalable data warehouse Amazon Redshift, called Concurrency Scaling available to customers in general. Additionally, it announced the general availability of Amazon Managed Blockchain which helps in creating and managing scalable blockchain networks.
AWS to Gain Traction
We believe Amazon is well poised to reap benefits from the immense growth opportunities present in the cloud market.
Per a report from MarketsandMarkets, the global cloud computing market is expected to hit $623.3 billion by 2023 from $272 billion in 2018. Further, it anticipated to witness a CAGR of 18% between 2018 and 2023.
Additionally, the latest report from Gartner shows that the global public cloud services market is expected to reach $214.3 billion in 2019, up 17.5% from 2018.
AWS’ expanding services portfolio is expected to continue aiding it in winning clientele. This in turn will aid its dominant position in this potential market.
Zacks Rank & Stocks to Consider
Currently, Amazon carries a Zacks Rank #3 (Hold).
Some better-ranked stock in the broader technology sector that can be considered is Rosetta Stone (RST - Free Report) , PayPal Holdings, Inc. (PYPL - Free Report) and Nuance Communications, Inc. (NUAN - Free Report) . While Rosetta Stone sports a Zacks Rank #1 (Strong Buy), PayPal and Nuance Communications carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Rosetta Stone, PayPal and Nuance Communications is pegged at 12.5%, 17.91% and 5%, respectively.
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