AWS's Market Share Problem Just Got Real

Amazon Web Services has quietly lost 6% market share since 2019 — now sitting at just 29% of the cloud market. The plot twist? It's not losing ground to Microsoft or Google. Instead, a swarm of smaller "neocloud" providers are eating its lunch.

These specialists focus on AI infrastructure, which is exactly where the tech world is headed. CoreWeave, Nebius, and DigitalOcean are the names to watch. DigitalOcean alone pulled in $230M revenue last quarter (up 16% YoY) and is actually profitable — something the bigger players can't always say.

Here's the kicker: Synergy Research Group projects the neocloud segment will explode from $23B today to nearly $180B by 2030. That's not just a market shift — that's a total redistribution of cloud computing power.

Why it matters: AWS's profit margins are shrinking as it fights to keep customers. If Amazon keeps bleeding share to faster, more specialized competitors, its premium stock valuation could take a hit. This is exactly why aggressive growth investors are eyeing the underdogs in this space — sometimes the best opportunities hide in the shadows of giants.