Amazon Owns the Fastest-Growing Digital Ad Business -- and It's Not Even Close
It turns out that even mighty Amazon (NASDAQ: AMZN) is not immune to the adverse effects of inflation and rising interest rates. For example, its quarterly revenue growth rates for its North American and International e-commerce segments peaked in the first quarter of 2021. Even worse, both e-commerce businesses turned in an unprofitable fourth quarter of 2022.
As for Amazon Web Services (AWS), revenue has consistently decelerated over the last several years amid intensifying competition and the law of large numbers, which states that the larger a company grows, the more difficult it is to achieve prior growth rates.
For instance, in the fourth quarter of 2018, AWS grew revenue at 45% year over year, and in the fourth quarter of 2022, the cloud unit only produced 20% year-over-year revenue growth. Additionally, operating income for AWS dropped 2% year over year during the latest fourth quarter.
Source Fool.com
