Amazon’s (AMZN - Free Report) cloud computing arm, Amazon Web Services (“AWS”) is well poised to grow further in the global cloud market on the back of increasing clientele, driven by expanding and innovating cloud services portfolio.
Recently, AWS has been selected by National Association for Stock Car Auto Racing (NASCAR) as its cloud-based machine learning and artificial intelligence workload provider. This highlights the power and reliability of AWS services.
NASCAR is leveraging AWS’ robust database capabilities in order to build cloud-based services and automate processes. It plans to shift its 18-petabyte video archive to AWS so that Amazon Rekognition, an AWS service, can automatically tag specific video frames with metadata, such as driver, car, race, lap, time and sponsors, thereby enabling users to search the tags easily without wasting any time.
NASCAR will utilize AWS services to enhance its full range of media assets including websites, mobile applications and social properties. It addition, it will use Amazon SageMaker to train deep learning models to enhance metadata and video analytics.
The deal lends AWS a competitive edge against the likes of Microsoft’s Azure, Alphabet’s Google Cloud and Alibaba’s cloud platform.
Portfolio Strength to Aid AWS Growth
Amazon’s continual efforts toward innovation and expansion are likely to help it maintain its cloud market lead.
Recently, Amazon made AWS Ground Station available to general customers. Notably, this solution assists customers to efficiently control satellites from AWS, download, store and process data from satellites into AWS Global Infrastructure Regions.
The company made Amazon Textract generally available to customers. By means of this service, the company is set to bring automation in the data extraction process.
It announced the general availability of Amazon Managed Blockchain, which facilitates creating and managing scalable blockchain networks.
With all these strong endeavors at its disposal, Amazon is well poised to reap benefits from the global cloud computing market.
Strong Market Position
Per a report from Synergy Research Group, AWS continued to lead the cloud market in fourth-quarter 2018 with a 34% share. The addition of Ellie Mae, Korean Air, Santander’s Openbank, Pac-12, Mobileye, Guardian Life Insurance, Amgen and National Australia Bank as clients provided a huge impetus to the company.
In comparison, Azure, Google Cloud and Alibaba Cloud acquired a respective 15%, 7% and 5% share of the market. However, the report shows that these companies are working on bridging the gap pretty fast.
We believe increasing adoption rate of AWS will continue to strengthen its market position and drive the top line.
Zacks Rank and Stocks to Consider
Currently, Amazon has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include Facebook, Inc. (FB - Free Report) , IAC/InterActiveCorp (IAC - Free Report) and AXT, Inc. (AXTI - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth for Facebook, IAC/InterActiveCorp and AXT is currently projected at 20.2%, 20.5% and 15%, respectively.
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