The Amazon Growth Story Is More Than AWS | Deepwater Asset Management
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What Jamie wrote
A look deeper on Amazon's financial results and AWS growth.
Key Takeaways
- AWS is losing market share and profitability has been declining.
- Amazon is more than AWS - in the future, other segments will drive profitability including retail, ads, and health.
I find the variability in operating margin wild. Azure at 43%, AWS at 24%, and Google Cloud at 3%? Suggestion is this is the result of discounting, and Azure is holding its prices more. It also makes me wonder about investment in growth. Is Azure investing slower?
Forward looking I don't see Amazon's brand having the power it needs in Health. Maybe, but they have work to do. Advertising is a huge business for them already, but that seems like a pivot to volatility for them. Retail is obvious.