Amazon Grows 11.8% in 2023, Eyes AWS Trainium Sales for $225B Upside
AMZN•Amazon grew revenue 11.8% in 2023 and will use Prime Day’s focus on groceries, household basics and back-to-school items to gauge U.S. consumer strength. AWS’s launch of Trainium chips for external sale and Bedrock’s TaaS model underpin expectations of 20%+ EPS growth and $225B revenue upside.
1. Resilient Revenue Growth amid Higher Rates
Federal Reserve Chair Kevin Warsh held interest rates steady with nine of 18 participants forecasting a rate hike before year-end 2026, yet Amazon delivered 9.4% revenue growth in 2022 and 11.8% in 2023, demonstrating resilience in a tighter monetary environment.
2. Prime Day Emphasizes Essentials Spending
Amazon’s upcoming Prime Day shifts its focus toward perishable groceries, household basics and back-to-school items to test U.S. consumer spending power and detect any strain in discretionary budgets.
3. AWS Chip Sales and Service Models Drive Upside
AWS plans to externalize its Trainium AI chips and expand Bedrock’s TaaS model, accelerating revenue and margin growth and supporting analyst projections of over 20% EPS gains and a potential $225 billion revenue upside.
