3 Reasons Amazon Should Consider Spinning Off AWS

Ever since Amazon (NASDAQ: AMZN) started breaking out Amazon Web Services' (AWS) revenue and operating profits in 2015, a growing number of analysts have called for the tech giant to spin off the expanding cloud business.

As a longtime Amazon investor, I've repeatedly opposed that idea, for a simple reason. AWS generates higher-margin revenue than Amazon's retail business, so it actually drives most of Amazon's profit growth, while supporting the expansion of its retail ecosystem with deep discounts, cheap hardware devices, brick-and-mortar stores, and other loss-leading strategies.

But over the past year, I've gradually warmed up to the idea of Amazon spinning off AWS. Let's take a look at three reasons Amazon should consider a spin-off -- and whether or not it could actually happen.

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Source Fool.com