This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Amazon Gains as Web Confab Trumpets Innovation

NEW YORK (TheStreet) -- Amazon (AMZN - Get Report) was gaining Thursday as its three-day Web Services conference bolstered investor outlook for the all-purpose online retailer's cloud services and product innovation.

Shares were adding 3.1% to $367.31 in afternoon trading as investors embraced Amazon Kinesis, a fully-managed service for real-time processing of high-volume, streaming data from which a customer can store and process terabytes of data from thousands of sources.

The upbeat tone of the conference was set Wednesday when Andy Jassy, senior vice president of Amazon Web Services, voiced CEO Jeffrey Bezos's prediction that the company's newest projects will eventually surpass Amazon's giant retail business.

"It is very possible that AWS could be the biggest business at Amazon," said Jassy.

During his keynote address, Jassy revealed a number of key product rollouts. Chief among them is AWS' expansion into the desktop virtualization market with Workspaces, which offers secure, cloud-based access to corporate documents and applications via devices ranging from laptops to tablets.

The service reduces the hassle of upfront and ongoing costs to less than 50% of the expenses associated with traditional desktop virtualization infrastructure solutions. Jassy also unveiled AppStream, a high definition, cloud-based applications streaming product; and CloudTrail, a security and compliance-boosting API call log.

As the conference progresses, UBS equity research analyst Eric Sheridan is commenting that his revenue forecast, though already optimistic, may still prove to be conservative when factoring in the new product announcements from the conference, especially pertaining to desktop virtualization.

So far, he's been estimating that AWS' contribution to Amazon's revenue will grow to $8.2 billion by 2017 from about $3 billion in 2013 and approximately $2 billion in 2012. His modeling takes into account in new product and service introductions, aggressive hiring and continuous price cuts. Sheridan says that AWS has made 38 price cuts in the last few years; 235 feature updates year to date compared with 159 in 2012; and now has numerous new, high profile security certifications. Overall, says Sheridan, AWS Trusted Advisor program has been able to put forth 700,000 recommendations to date, amounting to $140 million in annual customer savings.

The re:Invent 2013 developer conference is taking place in Las Vegas and ends on Nov. 15.

--Written by Andrea Tse in New York

Follow @atwtse

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AMZN $380.09 -2.00%
AAPL $126.60 0.15%
FB $80.00 -1.48%
GOOG $567.68 -1.33%
TSLA $193.88 -3.36%

Markets

DOW 17,856.78 -278.94 -1.54%
S&P 500 2,071.26 -29.78 -1.42%
NASDAQ 4,927.37 -55.4390 -1.11%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs