Posted 1/7/2024, 10:08:00 AM
Amazon's Cloud Business Drives Record Profits While Retail Arm Scrapes By
- Amazon's real profit driver is Amazon Web Services (AWS), which generated 74% of the company's operating income in 2022
- AWS is a highly profitable cloud computing platform used by businesses for data storage, complex computing, AI, etc.
- Amazon's North American e-commerce business has razor-thin profit margins (just 3% in 2022)
- But the massive e-commerce platform allows Amazon to unlock other revenue streams like Prime membership fees and advertising
- Going forward, growth in profitable units like AWS and advertising should boost Amazon's overall operating profits and stock price