Amazon (NASDAQ: AMZN) released second-quarter earnings last week, and Wall Street partied like it was 2021. The stock surged by double digits, and some analysts rushed to increase price targets. Given the price action and glowing endorsements, would you believe me if I told you Amazon's quarterly operating income was cut in half year over year (YOY)? In fact, over the first six months of 2022, operating income has fallen from $16.6 billion last year to just $7 billion. 

So what gives?

For several years, Amazon was known as a massive and growing online retail company with a cloud business attached. No more. Amazon should now be heralded as a cloud infrastructure and advertising company with an attached online retail component. Recent results demand it. Amazon Web Services (AWS) is far and away the market leader in cloud infrastructure services, and the growth continues.

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Source Fool.com