Key insights
- The post suggests that Anthropic's rapid revenue growth, and its corresponding compute spending on AWS, has not been fully priced into Amazon's stock. It argues that the significant increase in AWS revenue driven by Anthropic should lead to a noticeable acceleration in AWS growth, potentially impacting AMZN stock positively.
I‘m surprised I’m not reading about this anywhere because it’s so obvious, but since Anthropic revenue is currently exploding, adding 10$bln ARR in the past month, this should have very noticeable effects on AWS. AWS is above 150$bln annual run rate, but considering that Anthropic spends somewhere from 70-100+% of their revenue directly on compute and the largest chunk of that by far should be on AWS, this will create a very noticeable acceleration even for the behemoth that AWS is. Amzn stock has not moved at all throughout the explosive past weeks of Anthropic growth and I can’t imagine that this has always been priced in. Even for the biggest Anthropic bulls this revenue growth is staggering. What am I missing?