Amazon's AWS Backlog Just Hit $496 Billion: Is the Stock a Screaming Buy Under $270?

Amazon's AWS division has reached a $496 billion backlog, representing nearly three years of revenue at current run rates. AWS generates 60% of Amazon's operating income despite comprising only 21% of sales, demonstrating superior profit margins. Amazon is investing $220 billion in capital expenditures this year, primarily for data center expansion to meet surging AI-driven cloud computing demand. CEO Andy Jassy indicated Amazon cannot fulfill demand through 2027, with 2028 demand already appearing. The analyst views Amazon as a strong buy below $270, citing its multi-year growth trajectory and attractive valuation.