Category: tech sector

AWS: Powering the Internet and Amazon’s Profits


This post is by Aran Ali from Visual Capitalist


This graphic shows the surge in AWS profits which now represent 74% of Amazon's total profits

The Briefing

  • Cloud computing has become a hugely important element of Amazon’s business
  • In 2021, AWS accounted for 13% of Amazon’s revenue, but clocks in nearly three-quarters of their operating profit

AWS: Powering the Internet and Amazon’s Profits

The Amazon growth story has been a remarkable one so far.

On the top line, the company has grown every single year since its inception. Even in going back to 2004, Amazon generated a much more modest $6.9 billion in revenue compared to the massive $469 billion for 2021.

Most of these sales come from their retail and ecommerce operations, which the company has come to be known for. However, on the bottom line, the source of profit paints a completely different picture. That’s because 74% of Amazon’s operating profit comes from Amazon Web Services (AWS).

Here’s a closer look at the financials around Amazon and AWS:

YearAWS Operating Profit ($B)Total Operating Profit ($B)AWS % of Operating ProfitRevenue ($B)
2021$18.5$24.874%$469.8
2020$13.5$22.959%$386.1
2019$9.2$14.563%$280.5
2018$7.2$12.458%$232.8

Ultimately, the data suggests that the cloud business has been, and possibly will always remain, a higher margin business and consistent profit center in comparison to ecommerce and the physical distribution of goods.

A Glance at AWS

AWS is Amazon’s cloud computing service that provides the critical infrastructure for an assortment of applications like data storage and networking. With this, they help fuel over a million organizations including (Read more...)

The U.S. States with the Top Tech Salaries in 2021


This post is by Carmen Ang from Visual Capitalist


Average Tech Salary Across the US Best Paying States

The U.S. States with the Top Tech Salaries in 2021

In 2020, despite the economic turmoil caused by the global pandemic, America’s tech sector experienced rapid growth. Last year, the total number of U.S. tech jobs grew by 60,000.

Because of this demand, U.S. employers are willing to pay for the right talent—on average, tech workers in the U.S. earn about 61% more than the average salary. But some tech workers make more than others, depending on where they live.

This graphic by business.org uses data from the Bureau of Labor Statistics (BLS) to highlight the average annual tech salaries in each state, compared to the average salary of other occupations. We’ll also touch on the top-paying metro areas, and what type of tech jobs offer the highest compensation across the country.

Average U.S. Tech Salaries by State

Perhaps unsurprisingly, Washington and California have the highest average salaries, largely because of the high job density in those areas.

However, when it comes to the difference in tech salary versus average salary, Alabama takes the top spot—on average, tech jobs pay 85% more than other occupations in that state.

RankStateAverage hourly wage for tech workersAverage salary for tech workers% more that tech workers earn than all occupations
1Alabama$41.69$86,72085%
2Washington$58.96$122,64083%
3North Carolina$44.19$91,92080%
4Texas$45.04$93,69079%
5Virginia$51.50$107,13078%
6California$56.16$116,82078%
7Georgia$44.00$91,51076%
8Delaware$47.76 (Read more...)

How Much Does Big Tech Make Every Minute?


This post is by Aran Ali from Visual Capitalist


big tech revenue per minute

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The Briefing

  • The FAATMAN stocks have a collective market cap of $8.3 trillion
  • On average, these Big Tech companies generate a whopping $416,768 of revenue each minute

Big Tech Just Keeps Getting Bigger

It’s becoming increasingly difficult to wrap your head around just how massive some big tech stocks are getting, especially since they keep outdoing themselves.

The pandemic has pushed even more activity online, and the FAATMAN stocks (Facebook, Amazon, Apple, Tesla, Microsoft, Alphabet, and Netflix) have benefited immensely.

With many of these companies experiencing record breaking quarters, how much revenue do the big tech stocks generate per minute?

CompanyRevenue Per MinuteMarket Cap ($B)
Amazon$955,517$1,560
Apple$848,090$2,040
Alphabet (Google)$433,014$1,370
Microsoft$327,823$1,750
Facebook$213,628$733
Tesla$81,766$648
Netflix$50,566$238

Data as of March 2021. Revenue per minute figures based off SEC filings, and market caps from Seeking Alpha.

Milestones Across The Board

Facebook

Facebook continues to face considerable headwinds as privacy matters garner more political attention. But this is yet to have any material effect on (Read more...)