Amazon Reveals That Its AWS Cloud Service Is A $5B Business

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I knew Amazon Web Services was big but I didn't know it was $5 billion big. :eek:

For the first time, Amazon broke out the financial results for its Amazon Web Services business, which the company launched in 2006. The numbers showed that AWS was by far Amazon's most-profitable business. "Amazon Web Services is a $5 billion business and still growing fast -- in fact it's accelerating," Bezos said in a statement Thursday.
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From the article:

For the quarter, Amazon swung to a loss of of $57 million, or 12 cents a share -- in-line with analysts' expectations -- compared with a year-earlier profit of $108 million, or 23 cents a share.

Overall revenue rose 15 percent, to $22.72 billion, ahead of the $22.39 billion expected by analysts polled by Thomson Reuters. But operating expenses rose 15 percent, too, to $22.46 billion.
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Damn those margins are thin. 22.72 Billion in profits, 22.46 billion in expenses... I'm not adding this stock to my portfolio.
 
gigatexal said:
From the article:



Damn those margins are thin. 22.72 Billion in profits, 22.46 billion in expenses... I'm not adding this stock to my portfolio.
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Nor should you unless you are looking very long term. Amazon is known to put most of its money right back into growing the business.
 
Spire3660 said:
Nor should you unless you are looking very long term. Amazon is known to put most of its money right back into growing the business.
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Which is exactly what that money should be used for....not sitting on it for no goddamn reason.
 
Yup, use the hell out of their web services. We run all of our company servers/RDS/LBs/CDN, etc.. using their stuff.
 
Our company is building a cloud service utilizing AWS....fun stuff.
 
My company has been trying to emulate Amazon Web Services because of their SLA turnaround time being less than 4 hours. In my company, our SLA was typically 10 days which our CIO found unacceptable and wanted us to drive that down to under a day. Flash forward to now, we're now under a day all because Amazon sets the standard for cloud services. If some genius gets the idea to go over to AWS, it's going to be a pain in the ass converting tens of thousands of servers over.
 
gigatexal said:
From the article:



Damn those margins are thin. 22.72 Billion in profits, 22.46 billion in expenses... I'm not adding this stock to my portfolio.
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Cause of people like me that use 2 day free shipping on $5 stuff. I don't know how they make money.
 
DJS4000 said:
this is intentional. amazon has generated minimal profits, but huge revenues for years.

check this link for the reasoning.
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From that link:
"If Amazon has so many businesses that do make a profit, then why is it still showing quarterly losses, and why has even free cash flow decreased in recent years?

Because Amazon has boundless ambition. It wants to eat global retail. This is one area where the press and pundits accept Amazon's statements at face value."

I would make the analogy of a tower defense game where you spend just baaarely enuff each round to increase up defenses to survive (not let a leak) and spend every extra time into economy (growth)
 
hardware_failure said:
From that link:
"If Amazon has so many businesses that do make a profit, then why is it still showing quarterly losses, and why has even free cash flow decreased in recent years?

Because Amazon has boundless ambition. It wants to eat global retail. This is one area where the press and pundits accept Amazon's statements at face value."

I would make the analogy of a tower defense game where you spend just baaarely enuff each round to increase up defenses to survive (not let a leak) and spend every extra time into economy (growth)
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I would make the analogy that you are looking at a company that in 20 years wants to be Wal-Mart, Apple, Netflix & Google all in one. I feel that Amazon wants to be involved with EVERY aspect of your life. And people will willingly let this happen.

Amazon also owns Audible (audiobooks).
 
Well the market seems to love Amazon's numbers, stock's up a whopping 15% today. In a similar pattern based on cloud business performance, Microsoft's stock is up 10% today. And that's even with Windows numbers that were pretty bad.

Looks like the cloud is the next big thing in tech that's expected to see tremendous growth.
 
Amazing how they diversified and turned around, wasn't it a few years ago they were losing money quarter after quarter?
 
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