Amazon's CEO Andy Jassy Just Announced Huge News for Amazon Investors

AMZN CEO Andy Jassy says AWS could grow more than 40% in both 2027 and 2028, and he sees the cloud unit potentially becoming a $1 trillion business within a decade. That projection is the core of the bull case for AMZN.

The margin gap drives the math. AWS runs at a 39% operating margin, while Amazon's commerce business earns 7.7%. Because AWS earns roughly five times the margin per dollar of revenue, each increment of mix shift toward cloud lifts consolidated profitability disproportionately. The source's conclusion: if AWS growth delivers as Jassy projects, Amazon's operating income could more than quadruple.

Interpretation: the market is being asked to value AMZN less on retail revenue and more on how fast a 39%-margin segment scales. Jassy's 40%-plus figure covers 2027 and 2028 specifically, which sets a clear multi-year benchmark that future AWS quarterly results will be measured against. A $1 trillion AWS within ten years is a long-dated target, so it supports the narrative more than it changes near-term estimates.