You're Still Not Appreciating Amazon Web Services Enough
It's no secret that Amazon.com's (NASDAQ: AMZN) Amazon Web Services (AWS) business is the shining star in terms of profitability, despite the fact that AWS comprises a small minority of revenue. Not only is AWS more profitable, but it can also scale better than e-commerce and really enjoy operating leverage.
Amazon reported third-quarter earnings last night, and the results crushed it across the board. Total revenue came in at $43.7 billion, which translated into net income of $256 million, or $0.52 per share. On the conference call, CFO Brian Olsavsky said that Prime Day was a huge success, particularly on the international front, and led to "a record day for sign-ups for free trials." Prime's value proposition is so solid that investors can expect a strong conversion rate to paying members (not that Amazon would disclose any of these figures).
Image source: Amazon.
Source: Fool.com
Amazon.com Inc. Stock
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