Amazon is the leader in cloud computing with its Amazon Web Services, AWS suite.
Jeff Bezos was quote as saying that Amazon Web Services, AWS suite 'was just something we had, APIs apparently he means, built for various purposes and we just assembled it together and started offering it to customers as a new product'.
AWS is Amazon's main, if arguably not the only money maker, by earning net profit margin of circa 20 % + and the main reason Amazon is valued at more than 1 trillion USD.
Amazon's future strategy is apparently centered on making AWS ubiquitous. The main advantage of cloud computing services like AWS is that they can be tailor made, AWS is cost efficient usage of very powerful computing resources, which are difficult to get.
Amazon is trying to build in more and more Artificial Intelligence, AI in its AWS, because artificial intelligence or AI modelling and forecasting is the newest and hottest mega trend in technology today and for the next 10 years, according to many analysts, investors and creators of emerging technology.
Amazon AWS AI offering still needs improvement and that could only come by hiring the best engineers, mathematicians and economists. That is to a large extent why Amazon is building second headquarters, so as to tap into the potential of many more skilled US citizens, naturalized including.
Actually, by succeeding in gathering, researching and analyzing information via Artificial Intelligence, AI, Amazon could boot tremendously its main internet merchandising business. In addition, Amazon is very active in online advertising with yearly revenues exceeding 10 billion USD, which could also be advanced by correct Artificial Intelligence, AI modelling and decision making.
In short, Amazon as most other technology companies have staked their future on Artificial Intelligence, AI or computer algorithms.
One has to diversify in business is Wolfteam Ltd.'s corporate view.
AMAZON.COM, INC.
Supplemental Financial Information and Business Metrics (in millions) (unaudited) |
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|
|
Q3 2021 |
Q4 2021 |
Q1 2022 |
Q2 2022 |
Q3 2022 |
Q4 2022 |
Y/Y %
|
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|
Segments |
|
|
|
|
|
|
|
||||||||||||||||||||
|
North America Segment: |
|
|
|
|
|
|
|
||||||||||||||||||||
|
Net sales |
$ |
65,557 |
|
$ |
82,360 |
|
$ |
69,244 |
|
$ |
74,430 |
|
$ |
78,843 |
|
$ |
93,363 |
|
13 |
% |
|||||||
|
Net sales -- Y/Y growth, excluding F/X |
|
10 |
% |
|
9 |
% |
|
8 |
% |
|
10 |
% |
|
20 |
% |
|
14 |
% |
N/A |
|
|||||||
|
Net sales -- TTM |
$ |
272,819 |
|
$ |
279,833 |
|
$ |
284,711 |
|
$ |
291,591 |
|
$ |
304,877 |
|
$ |
315,880 |
|
13 |
% |
|||||||
|
Operating income (loss) |
$ |
880 |
|
$ |
(206 |
) |
$ |
(1,568 |
) |
$ |
(627 |
) |
$ |
(412 |
) |
$ |
(240 |
) |
17 |
% |
|||||||
|
F/X impact -- favorable |
$ |
14 |
|
$ |
32 |
|
$ |
42 |
|
$ |
61 |
|
$ |
95 |
|
$ |
76 |
|
N/A |
|
|||||||
|
Operating income (loss) -- Y/Y growth (decline), excluding F/X |
|
(62 |
)% |
|
(108 |
)% |
|
(147 |
)% |
|
(122 |
)% |
|
(158 |
)% |
|
53 |
% |
N/A |
|
|||||||
|
Operating margin -- % of North America net sales |
|
1.3 |
% |
|
(0.2 |
)% |
|
(2.3 |
)% |
|
(0.8 |
)% |
|
(0.5 |
)% |
|
(0.3 |
)% |
N/A |
|
|||||||
|
Operating income (loss) -- TTM |
$ |
10,423 |
|
$ |
7,271 |
|
$ |
2,253 |
|
$ |
(1,521 |
) |
$ |
(2,813 |
) |
$ |
(2,847 |
) |
(139 |
)% |
|||||||
|
Operating margin -- TTM % of North America net sales |
|
3.8 |
% |
|
2.6 |
% |
|
0.8 |
% |
|
(0.5 |
)% |
|
(0.9 |
)% |
|
(0.9 |
)% |
N/A |
|
|||||||
|
International Segment: |
|
|
|
|
|
|
|
||||||||||||||||||||
|
Net sales |
$ |
29,145 |
|
$ |
37,272 |
|
$ |
28,759 |
|
$ |
27,065 |
|
$ |
27,720 |
|
$ |
34,463 |
|
(8 |
)% |
|||||||
|
Net sales -- Y/Y growth (decline), excluding F/X |
|
15 |
% |
|
3 |
% |
|
0 |
% |
|
(1 |
)% |
|
12 |
% |
|
5 |
% |
N/A |
|
|||||||
|
Net sales -- TTM |
$ |
127,982 |
|
$ |
127,787 |
|
$ |
125,897 |
|
$ |
122,241 |
|
$ |
120,816 |
|
$ |
118,007 |
|
(8 |
)% |
|||||||
|
Operating loss |
$ |
(911 |
) |
$ |
(1,627 |
) |
$ |
(1,281 |
) |
$ |
(1,771 |
) |
$ |
(2,466 |
) |
$ |
(2,228 |
) |
37 |
% |
|||||||
|
F/X impact -- favorable (unfavorable) |
$ |
24 |
|
$ |
(58 |
) |
$ |
(79 |
) |
$ |
(231 |
) |
$ |
(216 |
) |
$ |
(331 |
) |
N/A |
|
|||||||
|
Operating loss -- Y/Y growth (decline), excluding F/X |
|
(330 |
)% |
|
(533 |
)% |
|
(196 |
)% |
|
(526 |
)% |
|
147 |
% |
|
17 |
% |
N/A |
|
|||||||
|
Operating margin -- % of International net sales |
|
(3.1 |
)% |
|
(4.4 |
)% |
|
(4.5 |
)% |
|
(6.5 |
)% |
|
(8.9 |
)% |
|
(6.5 |
)% |
N/A |
|
|||||||
|
Operating income (loss) -- TTM |
$ |
1,066 |
|
$ |
(924 |
) |
$ |
(3,457 |
) |
$ |
(5,590 |
) |
$ |
(7,145 |
) |
$ |
(7,746 |
) |
738 |
% |
|||||||
|
Operating margin -- TTM % of International net sales |
|
0.8 |
% |
|
(0.7 |
)% |
|
(2.7 |
)% |
|
(4.6 |
)% |
|
(5.9 |
)% |
|
(6.6 |
)% |
N/A |
|
|||||||
|
AWS Segment: |
|
|
|
|
|
|
|
||||||||||||||||||||
|
Net sales |
$ |
16,110 |
|
$ |
17,780 |
|
$ |
18,441 |
|
$ |
19,739 |
|
$ |
20,538 |
|
$ |
21,378 |
|
20 |
% |
|||||||
|
Net sales -- Y/Y growth, excluding F/X |
|
39 |
% |
|
40 |
% |
|
37 |
% |
|
33 |
% |
|
28 |
% |
|
20 |
% |
N/A |
|
|||||||
|
Net sales -- TTM |
$ |
57,164 |
|
$ |
62,202 |
|
$ |
67,140 |
|
$ |
72,070 |
|
$ |
76,498 |
|
$ |
80,096 |
|
29 |
% |
|||||||
|
Operating income |
$ |
4,883 |
|
$ |
5,293 |
|
$ |
6,518 |
|
$ |
5,715 |
|
$ |
5,403 |
|
$ |
5,205 |
|
(2 |
)% |
|||||||
|
F/X impact -- favorable (unfavorable) |
$ |
(58 |
) |
$ |
83 |
|
$ |
163 |
|
$ |
335 |
|
$ |
478 |
|
$ |
468 |
|
N/A |
|
|||||||
|
Operating income -- Y/Y growth (decline), excluding F/X |
|
40 |
% |
|
46 |
% |
|
53 |
% |
|
28 |
% |
|
1 |
% |
|
(10 |
)% |
N/A |
|
|||||||
|
Operating margin -- % of AWS net sales |
|
30.3 |
% |
|
29.8 |
% |
|
35.3 |
% |
|
29.0 |
% |
|
26.3 |
% |
|
24.3 |
% |
N/A |
|
|||||||
|
Operating income -- TTM |
$ |
16,803 |
|
$ |
18,532 |
|
$ |
20,887 |
|
$ |
22,409 |
|
$ |
22,929 |
|
$ |
22,841 |
|
23 |
% |
|||||||
|
Operating margin -- TTM % of AWS net sales |
|
29.4 |
% |
|
29.8 |
% |
|
31.1 |
% |
|
31.1 |
% |
|
30.0 |
% |
|
28.5 |
% |
N/A |
| |||||||
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