AWS-Gone: How The Last Hope For Amazon Disappeared (NASDAQ:AMZN) - Seeking Alpha

When we last covered Amazon (NASDAQ: AMZN) we gave it an upgrade to a "Hold" rating after pushing the "Strong Sell" thesis in May and October.

AMZN's revenues are tracking nominal GDP and a majority of companies accomplish that without forcing investors to pay ridiculously demanding multiples.

For the longest time investors have dodged that question by singing sweet lullabies of how Amazon Web Services, or AWS, was worth trillions of dollars.

Amazon.com Inc.’s cloud-storage business is on a clear path toward a $3 trillion value, almost triple what the whole company is worth now in the stock market, according to a Redburn Ltd. analyst.

The unit, Amazon Web Services, is so powerful that the company may decide at some point to split it off from the massive, slower-growing online retail operation, analyst Alex Haissl wrote in a 128-page report initiating coverage of the cloud-computing industry.

Keep in mind the legendary company known as Microsoft ( MSFT), which did not stop making boatloads of money even in the global financial crisis, traded at a P/E ratio of 8.59 at one point.