People Forget Amazon’s $600 Billion E-Commerce Business Is Bigger Than Microsoft
People Forget Amazon’s $600 Billion E-Commerce Business Is Bigger Than Microsoft
Douglas A. McIntyreTue, September 1, 2026 at 6:04 PM UTC
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Amazon's e-commerce revenue will exceed $750 billion this year, surpassing both Exxon and Microsoft in total revenue.
AWS projects $180 billion in 2026 revenue at 40% growth, representing an estimated $2 trillion of Amazon's $3 trillion market cap.
Breaking Amazon into two public companies could let investors separately choose its stable e-commerce and high-growth AWS businesses.
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Investors often forget that Amazon (NASDAQ: AMZN) has $700 billion in e-commerce revenue based on its first-half revenue run rate. Since its fourth quarter is by far its largest, the number will probably exceed $750 billion. That will make the e-commerce division as large as Exxon’s (NYSE: XOM) total and larger than Microsoft's (NASDAQ: MSFT). In fact, including AWS, Amazon was the No.1 company among the Fortune 500, having passed Walmart (NYSE: WMT) last year.
A quarter of Amazon’s e-commerce revenue is “International,” and the balance comes from what it calls “North America.” North America’s operating profit will be about $35 billion this year. International will be about $7 billion. AWS revenue will be $180 billion in 2026, based on the current run rate. Operating income will be approximately $70 billion.
Beyond size, the divisions differ: e-commerce revenue is growing at about 18%. AWS top-line growth is closer to 40%.
Amazon’s market cap is $3 trillion. It is hard, if not impossible, to say how much e-commerce contributes to that value. It’s instructive to look at Walmart with a market cap of $832 billion. Amazon’s e-commerce growth rate is much higher, so move its valuation to $1 trillion.
That means AWS is worth $2 trillion. Compare that to AI giant Anthropic, which has a market value of about $1.8 billion. Anthropic is an AI pure play, which should have about $65 billion in revenue this year. AWS’s “market cap” would be slightly more valuable than the entire market cap of SpaceX.
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AWS houses most of Amazon’s AI businesses. That means they carry most of Amazon’s future and almost all of its risk. If AI is the greatest investment in human history, e-commerce is worth very little in comparison. If AI is mostly a poor gamble on hundreds of billions of dollars in data center construction, AWS may be worth very little.
Finally, there is the debate about whether Amazon should be broken into two public companies. Since the relationship between e-commerce and the cloud is relatively small, investors might be better off if they could choose between the two.
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If you’ve saved over $1,000,000, this guide is for you. The last thing you want in retirement is to run out of money, you want your money to generate lasting income while you enjoy your life.
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Contact editorial@247wallst.com for any questions or corrections.
Source: “AOL Money”
