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That's one way to look at it. The other way is that Amazon is growing their mindshare even more, pulling in more long term customers of Amazon Prime, Prime Vid

That's one way to look at it. The other way is that Amazon is growing their mindshare even more, pulling in more long term customers of Amazon Prime, Prime Video, and Fresh. Not to mention Twitch and Audible, which should be growing as well. Plus, they own AWS which is the majority of their profits. The huge surge of usage this Q might even be enough to offset any additional expenses. If there's a dip because Amazon misses earnings, long-term investors will surely buy it because of Amazon is simply growing market share, and one of the few companies that will come out of this stronger.

nostromo 7y ago
Amazon is a retailer, and retailers get hurt in recessions. Yes, there's a wave of panic buying currently, but that will recede. AWS may also surge with remote work, but enterprise budgets will be slashed in a recession. And a non-trivial amount of AWS's customers may fold completely.
- AznHisoka 7y ago
  It's true that retailers get hurt in a recession. That's a headwind. The tailwind is that even more people will be shopping online via Amazon going forward. I'm betting it'll be the brick and mortars hurting more. Some of their market share will be cut due to a recession, but some of it will be going to Amazon. AWS spend will go down in a recession too, but there are numerous other companies I'll bet against before AWS (ie martech, advertising, HR tech, etc). Infrastructure is one of the most critical parts of a company.
- rajnathani 7y ago
  Even if many of AWS’s customers fold, the big ones are likely to file for bankruptcy and thus their backend systems will still likely be operational for sometime. Example: If an airline company were to file for bankruptcy, then their booking management system (the part not likely handled by Amadeus) would still be operational. Their transactional systems (databases and associated infrastructure) would likely still be kept running, however their analytical workloads may see some trimming.
- s1artibartfast 7y ago
  I expect that there was a lot of panic buying at the beginning, but most Amazon groceries at this point are weekly grocery needs. With restaurants closed and questionable for the foreseeable future, I dont see this changing soon.

nostromo 7y ago

Amazon is a retailer, and retailers get hurt in recessions. Yes, there's a wave of panic buying currently, but that will recede. AWS may also surge with remote work, but enterprise budgets will be slashed in a recession. And a non-trivial amount of AWS's customers may fold completely.

AznHisoka 7y ago
It's true that retailers get hurt in a recession. That's a headwind. The tailwind is that even more people will be shopping online via Amazon going forward. I'm betting it'll be the brick and mortars hurting more. Some of their market share will be cut due to a recession, but some of it will be going to Amazon. AWS spend will go down in a recession too, but there are numerous other companies I'll bet against before AWS (ie martech, advertising, HR tech, etc). Infrastructure is one of the most critical parts of a company.
rajnathani 7y ago
Even if many of AWS’s customers fold, the big ones are likely to file for bankruptcy and thus their backend systems will still likely be operational for sometime. Example: If an airline company were to file for bankruptcy, then their booking management system (the part not likely handled by Amadeus) would still be operational. Their transactional systems (databases and associated infrastructure) would likely still be kept running, however their analytical workloads may see some trimming.
s1artibartfast 7y ago
I expect that there was a lot of panic buying at the beginning, but most Amazon groceries at this point are weekly grocery needs. With restaurants closed and questionable for the foreseeable future, I dont see this changing soon.