Anecdotally, only about 10% of business is currently conducted in the cloud.
With a secular trend of cloud computing just getting traction, there are huge opportunities.
AMZN is forecasting no net operating profit for Q1 2017. Their PE ratio is 187. Many professional investors avoid PE ratios above 20. Many investors have no problem with high PE ratios if the growth story is there.
Why does AMZN predict no profit next quarter despite their massive scale? They are investing massive dollars in growing their business, the top line.
AMZN is a huge player in the cloud hosting space where there is massive growth potential, in addition to their other services such as online retail, with which most are familiar.
As long as the overall market is not in a downtrend, AMZN is attractive to buy on pullbacks.