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

Amazon Web Services posted a $496 billion backlog, representing nearly three years of revenue at current run rates, underscoring the cloud division's multi-year visibility. AWS accounts for 60% of AMZN's operating income while making up just 21% of total sales, reflecting materially higher margins than the retail business.

The company is deploying $220 billion in capital expenditures this year, concentrated on data center expansion to meet AI-driven cloud demand. CEO Andy Jassy told investors the company cannot fulfill customer orders through 2027, with 2028 demand already forming a queue. The backlog figure suggests contracted but not yet recognized revenue, providing earnings support well beyond the current fiscal year.

One analyst pegged AMZN as a strong buy under $270, citing the multi-year growth runway tied to cloud infrastructure buildout. The backlog-to-revenue ratio of nearly three years offers unusual forward clarity for a hyperscaler, reducing near-term execution risk tied to demand generation.