Les Billets de Monocle

Amazon: it's going to be short

03 May 2022

Amazon released its quarterly results last Thursday.

Here's the overview by division (operating income):

  • Amazon North America: $1.6 billion loss
  • Amazon International: $1.3 billion loss.
  • AWS (Amazon Web Services: cloud platform): $6.5 billion profit.

On AWS, Amazon announced last quarter that they were changing their accounting rule by increasing the life of their servers (they had already done this 2 years ago). This manipulation generates $1.0 Billion in paper profit in this quarter.
So without this, AWS makes $5.5 billion in operating profit.
And the group $2.6 billion for this quarter.

After Friday's drop (-15%), Amazon is still worth $1,300 Billion.

That seems like a lot.

Have a good week,

Charles

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