Edgewood Management LLC on Amazon.com
Thesis
Edgewood sees AWS as Amazon's primary profit engine, with AI workloads reaccelerating growth and a higher-margin mix lifting company-wide profitability. Custom silicon such as Trainium and Graviton, combined with Bedrock, is expected to strengthen AWS's position as a default infrastructure layer for enterprise AI. In retail, robotics, fulfillment regionalization and advertising should structurally improve margins while e-commerce penetration still has room to grow. Edgewood believes a mid-20s P/E represents an attractive entry point given above-consensus earnings potential and optionality from initiatives such as robotics, Zoox, Project Leo and Amazon Now.
“AWS is the growth engine”