Amazon: All Eyes On A Single Number


  •, Inc. has diverse business segments which can deliver growth over the long term.
  • However, in the near term, the stock trajectory will depend largely on the growth of operating income in Amazon Web Services.
  • AWS has delivered the entire operating income of Amazon in the last few quarters as the North America and International segments reported losses.
  • The YoY revenue growth and operating margin of AWS have seen declines in the last few quarters due to tougher comps which are hurting the overall operating income growth of AWS.
  • Despite tough comps, Amazon’s AWS could be a surprise winner in this quarter, which can improve the positive sentiments toward Amazon stock.

Amazon fulfillment center building in Las Vegas

4kodiak/iStock Unreleased via Getty Images, Inc. (NASDAQ:AMZN) stock has rebounded in the last few weeks after seeing a massive decline following Q3 2022 earnings. Wall Street eagerly awaits the Q4 2022 earnings report (expected Thursday

Net sales growth of AWS in the last few quarters.

Company Filings

Steady decline in the operating margin of AWS in last two quarters.

Company Filings

Advertising revenue is still less than 50% of AWS segment.

Company Filings

AWS delivered all the operating income for Amazon in recent quarters.

Company Filings

Gartner estimates a good year for growth in cloud business as the headwinds of 2022 decline.


Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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