From The Motley Fool · Adria Cimino · · 50s
Amazon's Safe Retail Business Earns Less Than AWS
Amazon's e-commerce business earns less than AWS, but cautious investors still see value.
In brief
Amazon's e-commerce business earns less than AWS, but cautious investors still see value. Amazon's e-commerce generates $11 billion quarterly operating income while AWS drives 60% of operating income with $42 billion sales. Originally reported by The Motley Fool.
Amazon's Two Engines
Amazon built its fortune on e-commerce and now has AWS as its fastest growing business.
AWS Growth
AWS sales jumped 37% to $42 billion with $16 billion operating income.
Profit Split
AWS makes up 21% of Amazon's sales but 60% of operating income.
E-commerce Revenue
E-commerce advertising revenue rose 26% to $19 billion quarterly.
Capital Expenditures
Amazon plans $220 billion in capital expenditures this year with negative free cash flow.
Investor Outlook
Cautious investors see Amazon as a good buy if they recognize AWS' key role in earnings.
Here's the gist
Amazon's e-commerce generates $11 billion quarterly operating income while AWS drives 60% of operating income with $42 billion sales.
