econintersect.com
       
  

FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.



posted on 30 August 2017

Cloud Business Drives Amazon's Profits

from Statista.com

-- this post authored by Felix Richter

Amazon (NASDAQ:AMZN) announced its second quarter earnings, beating analyst expectations in terms of revenue but falling short below the line.


Please share this article - Go to very top of page, right hand side, for social media buttons.


The Seattle-based e-commerce behemoth reported total sales of $37.96 billion for the three months ending June 30, up from $30.4 billion in Q2 2016. Net profit dropped by nearly 80 percent to $197 million, continuing Amazon's long history of putting long-term growth over short-term profits.

As our chart illustrates, Amazon’s profit (or what is left of it) is mainly driven by its highly profitable cloud business these days. Amazon Web Services (AWS), the market leader in the highly competitive market for cloud infrastructure, accounted for more than 100 percent of the company’s operating profit in the past quarter because the rest of Amazon's business actually ran a deficit. The fact that AWS accounted for little more than 10 percent of the company’s revenue at the same time, illustrates how high the operating margin is in the cloud segment compared to Amazon notoriously low-margin e-commerce business.

For many years, Amazon has reinvested nearly every dollar it earns into its own growth. Now that the cloud segment is making so much money, it seems like even Jeff Bezos is running out of ideas to reinvest all of it.

Infographic: Cloud Business Drives Amazon's Profits | Statista You will find more statistics at Statista.

>>>>> Scroll down to view and make comments <<<<<<

Click here for Historical Investing Post Listing










Make a Comment

Econintersect wants your comments, data and opinion on the articles posted. You can also comment using Facebook directly using he comment block below.




Econintersect Investing








search_box
Print this page or create a PDF file of this page
Print Friendly and PDF


The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.







Keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government





























 navigate econintersect.com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2017 Econintersect LLC - all rights reserved