What is AWS and why does its restructuring matter?

AWS (Amazon Web Services) is Amazon's cloud computing division and the world's largest cloud service provider. It offers servers, storage, databases, and other services that companies use to build and run applications without managing physical hardware. AWS's restructuring matters because as the market leader, any operational changes or job cuts could create opportunities for competitors to gain market share, recruit talent, and attract customers who might be concerned about service disruptions or support changes.

What is cloud computing?

Cloud computing is the delivery of computing services—like servers, storage, databases, networking, software, and analytics—over the internet ("the cloud"). Instead of owning and maintaining physical data centers and servers, companies can access technology services on an as-needed basis from a cloud provider. This allows businesses to be more flexible, innovative, and cost-efficient by paying only for what they use without having to invest in and maintain expensive hardware.

What's the difference between cloud providers like Microsoft Azure and Google Cloud?

While all major cloud providers offer similar core services (computing power, storage, and networking), they differ in their strengths, pricing models, and specialized offerings. Microsoft Azure excels in enterprise integration with existing Microsoft products and hybrid cloud solutions. Google Cloud is known for its strength in data analytics, machine learning, and container technologies. Other providers like Oracle focus on database services, while specialized companies like Snowflake concentrate on data warehousing. Companies often choose providers based on their specific needs, existing technology investments, pricing, and geographic availability.

What is a "multi-cloud strategy" and why is it important?

A multi-cloud strategy involves using cloud services from two or more providers rather than relying on a single vendor. This approach helps companies avoid vendor lock-in, increase resilience against outages, optimize costs by choosing the best services from each provider, and leverage specialized capabilities unique to different platforms. With AWS restructuring, more companies may accelerate multi-cloud adoption as they reassess their cloud dependencies, which could benefit several companies in this stock group that either offer alternative cloud platforms or provide tools that work across multiple cloud environments.

What are "Analyst Ratings" and "Potential Profit %" in the stock cards?

Analyst Ratings are professional evaluations from financial experts who study companies and make recommendations about their stocks. These typically range from "Strong Buy" to "Strong Sell" and represent an opinion on whether investors should purchase, hold, or sell shares based on financial performance, growth prospects, and market conditions. Potential Profit % indicates the estimated percentage gain a stock might achieve over a specific timeframe, usually calculated from analysts' price targets. Both metrics provide insights into how investment professionals view a company's future prospects, though they're projections, not guarantees.

17 handpicked stocks

AWS Restructuring Creates Cloud Competition Opportunity

Amazon's job cuts in its profitable AWS cloud division could mean big opportunities for competitors. This carefully selected group of stocks represents companies positioned to gain market share, attract top talent, and capitalize on this moment of cloud industry disruption.

Han Tan | Market Analyst

Updated 2 days ago | Published at juillet 20