Amazon Web Services is becoming a nice predictable profit engine
For years, one of the big knocks against Amazon was its inability or unwillingness to deliver consistent profits. E-commerce is a fickle and seasonal business, and Amazon has often plowed a lot of its income back into infrastructure and new initiatives.
But the last few quarters, that's started to change, in large part thanks to Amazon Web Services, Amazon's cloud business. This chart from Statista shows operating profit of AWS versus Amazon's total operating profit, not including stock-based compensation and operating expenses that are not allocated to any single segment. (We had to make those exceptions for the sake of the chart because that's how Amazon used to report AWS numbers.) It's clear that AWS is a lot more predictable than the rest of Amazon's business - operating profit has risen at a fairly consistent rate ever since Q2 2014.
Statista
Disclosure: Jeff Bezos is an investor in Business Insider through hispersonal investment company Bezos Expeditions.
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- Saudi Arabia wants China to help fund its struggling $500 billion Neom megaproject. Investors may not be too excited.
- Catan adds climate change to the latest edition of the world-famous board game
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- JNK India IPO allotment – How to check allotment, GMP, listing date and more
- Indian Army unveils selfie point at Hombotingla Pass ahead of 25th anniversary of Kargil Vijay Diwas
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market